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Israel's defence minister has ordered the military to "seize additional areas in Gaza" if Hamas does not free all remaining hostages.
Israel Katz said on Friday that the military would continue its ground operation in Gaza "with increasing intensity" until all of the hostages "both living and dead" were returned.
It is yet another escalation in the conflict, which reignited this week as Israel broke a ceasefire, in place since January, to resume its bombing campaign. Hundreds of people have been killed in the ensuing violence.
"The more Hamas continues its refusal, the more territory it will lose to Israel," Katz said.
In his statement on Friday, Katz said that Israel still agreed to a proposal, which was brought by US envoy Steve Witkoff, "to release all the kidnapped, both living and dead, in advance and in two stages with a ceasefire in between".
"We will intensify the fighting with strikes from the air, sea and land and by expanding the ground manoeuvre until the hostages are released and Hamas is defeated," Katz wrote.
The defence minister also said Israel would "implement US President Trump's voluntary transfer plan for Gaza residents".
Trump said he wants the US to take over and rebuild the Gaza Strip, while permanently removing its population of two million Palestinians.
The Palestinian Authority and Hamas have said the Strip is "not for sale", while the UN warned that any forced displacement of civilians from occupied territory is strictly prohibited under international law and "tantamount to ethnic cleansing".
Months of negotiations, led by the US, Qatar and Egypt, saw a ceasefire deal proposed in three stages. Israel and Hamas failed to agree on how to take the truce beyond the first phase.
The ceasefire was broken on Tuesday when Israel launched a heavy wave of airstrikes on the Gaza Strip, killing more than 430 people in two days, the Hamas-run health ministry said. On Thursday, Hamas launched three rockets at Tel Aviv.
Blaming Hamas for the resumption of violence, Israeli government spokesman David Mencer said the group had "rejected every hostage deal".
The plan stalled when the US and Israel proposed to extend stage one. Hamas rejected the change and said it was a "blatant attempt" by Israel "to evade the agreement".
Israel says Hamas is still holding 59 hostages, 24 of whom are believed to still be alive.
EPA
Israel Katz issued a "last warning" to Hamas on Wednesday, calling for the return of the remaining hostages being held there
Hamas has denied it is responsible for stalling the negotiations, and said it "remains deeply involved" and is "engaging with the mediators with full responsibility and seriousness".
In a statement on Telegram, Hamas wrote it is discussing "the Witkoff proposal and other different ideas put forward, all with the goal of securing a prisoner exchange deal that ensures the release of prisoners, ends the war, and achieves a withdrawal" [of Israeli troops from the Gaza Strip].
In his statement, Katz also said that civilians would be evacuated from the areas the IDF are targeting.
Previous evacuation orders have sent panic through Palestinians families, many of whom have been displaced repeatedly by the war and have few safe options left.
The Israeli military launched a campaign to destroy Hamas in response to an unprecedented cross-border attack on 7 October 2023, in which about 1,200 people were killed and 251 were taken hostage.
More than 48,500 Palestinians have been killed in Gaza since then, the Hamas-run health ministry says, and there is large-scale destruction to homes and infrastructure in the Strip.
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