Hamas has rejected an Israeli offer to free all hostages taken into the Gaza Strip in exchange for the release of 1,500 Palestinians from Israeli prisons, Saudi media outlet Al-Arabiya reported on Thursday.

US Secretary of State Antony Blinken said on Thursday that a deal on the release of hostages held by Hamas remains possible, but there remain "very hard" issues to be resolved.

Asked whether an agreement could be reached on a break in hostilities before the Muslim holy month of Ramadan begins on March 10, Blinken said an earlier response from Hamas on a potential deal had included some "clear non-starters" but offered the possibility of working toward an agreement.

"We're now in the process with our counterparts from Qatar, from Egypt, from Israel, in working on that and working very intensely on that with the goal of trying to find an agreement, and I believe that it is possible," Blinken said at a news conference during a visit to Albania.... Read More: JPost