With US President Donald Trump's 20-point plan now appearing closer than any previous effort to bring an end to the fighting, delegations were upgrading their presence at the talks, launched on Monday in an Egyptian Red Sea beach resort.
Trump sent his son-in-law, Jared Kushner and special envoy Steve Witkoff, while Israeli Prime Minister Benjamin Netanyahu sent his close confidant, Strategic Affairs Minister Ron Dermer.
They were expected to join the talks on Wednesday, along with the prime minister of longstanding mediator Qatar, Sheikh Mohammed bin Abdulrahman al-Thani.
Turkish Foreign Minister Hakan Fidan said the indirect negotiations between Israel and the Palestinian militant group Hamas had made "a lot of headway" and that a ceasefire would be declared if they reached a positive outcome.
The plan has broad international support, but crucial details have yet to be spelled out, including the timing, a post-war administration for the Gaza Strip, the fate of Hamas and the prospects for an independent Palestinian state.
Hamas, the militant group that precipitated the war by attacking Israeli territory two years ago, said it had handed over its lists of hostages and Palestinian prisoners to be exchanged in a swap, and was optimistic about the talks so far.
The list of Palestinians Hamas wants freed is expected to include some of the most prominent prisoners ever jailed by Israel, whose release had been off limits in previous ceasefires.
According to a Palestinian source, the list includes Marwan al-Barghouti, a leader of the Fatah movement, and Ahmed Saadat, head of the Popular Front for the Liberation of Palestine.
Both are serving multiple life sentences for attacks that killed Israelis.
Hamas says the indirect negotiations are focused so far on just three issues: halting the conflict, withdrawing Israeli forces from Gaza and the swap deal.
The group has so far refused to discuss one of the biggest sticking points: Israel's demand that Hamas give up its weapons, which the Palestinian source said Hamas would reject as long as Israeli troops occupy Palestinian land.
Within Gaza, Israel has dialled down its military campaign at Trump's behest, though it has not halted strikes altogether.
Gaza medical authorities reported eight people killed in Israeli strikes in the last 24 hours, the lowest toll for weeks.
"We hope from God that a ceasefire would take place as soon as possible, because people can't bear the suffering anymore," said Jehad al-Shagnobi, whose house was destroyed.
Trump's plan calls for an international body led by Trump himself and including former British Prime Minister Tony Blair to play a role in Gaza's post-war administration.
Arab countries, which back the plan, say it must lead to eventual independence for a Palestinian state, which Netanyahu says will never happen.
Even if a breakthrough is reached, there is no clear indication who will rule Gaza when the war ends.
Netanyahu, Trump, Western and Arab states have ruled out a role for Hamas, which has run Gaza since driving out Palestinian rivals in 2007.
Hamas has said it was ready to relinquish Gaza governance, but only to a Palestinian technocrat government supervised by the Palestinian Authority and backed by Arab and Muslim countries, as per a longstanding Egyptian proposal.
It rejects any role for Blair or foreign rule of Gaza.
Global outrage has mounted against Israel's assault.
Multiple rights experts, scholars and a UN inquiry say it amounts to genocide.
Israel calls its actions self-defence after the 2023 Hamas attack.
Gaza authorities say more than 67,000 people have been killed in Israel's offensive.
It followed the October 7, 2023, attack by Hamas, when 1200 people were killed and 251 taken to Gaza as hostages, according to Israel's tallies.
