As the deadline was pushed back, officials on both sides offered little reason for optimism.
"There hasn't been any
progress at all," Azzam al-Ahmed, the lead Palestinian negotiator, told
reporters, dismissing earlier reports that a deal was set to be signed.
"We hope that every
minute in the next 24 hours will be used so we can reach an agreement or
the cycle of violence will continue," he said.
Negotiating through
Egyptian go-betweens, Israel and the Palestinians have been attempting
over the past week to resolve longstanding issues amid a temporary
cease-fire in the deadly fighting in and around Gaza.
Under the latest extension, the truce is now set to expire at midnight Tuesday ( 5 p.m. ET).
'Very fragile and very explosive'
Mustafa Barghouti, leader
of the Palestinian National Initiative, accused the Israelis of
blocking the path to an agreement. He said by phone from Gaza, after
returning from Cairo, that the situation is "very fragile and very
explosive."
Prime Minister Benjamin
Netanyahu of Israel said earlier Monday that Israel was "prepared for
any scenario," with the Israel Defense Forces ready "for a very firm
action if fire is resumed."
Israeli forces have
remained positioned around Gaza since they withdrew two weeks ago after
destroying more than 30 tunnels, some of which extended under the border
into Israel.
The conflict, which
began in early July, has killed more than 2,000 Palestinians, leaving
entire Gaza neighborhoods in rubble. The violence has killed 67 people
on the Israeli side, with militants in Gaza firing roughly 3,500 rockets
toward Israel.
'Impossible demands'
In the talks, Israel is
calling for Gaza to be demilitarized, demanding that Hamas, which
controls the territory, and other militant groups lay down their arms.
Hamas leader Izzat Risheq said Monday that the group's weapons were "for self-defense" against Israel.
"But when we have our
own Palestinian state with its own national army to protect its
citizens, there will be no need for any party to carry any kind of
weapons," he said.
Speaking on condition of
anonymity Monday, a Hamas leader said the Israelis had "submitted
impossible demands on the Palestinians such as the issue of
demilitarization, destroying the tunnels and the issue of preventing
Palestinians from developing their missiles technology."
The Israelis, he said, "want everything and want to give nothing."
He said the Palestinians
had responded with a counterproposal offering Israel "full security in
exchange of full opening of border crossings" or lifting the siege
completely.
Dispute over blockade
But a senior Israeli official suggested to CNN that there were contradictions coming from the Palestinian side.
"How can Israel have
full security while they're still digging terror tunnels and making
rockets?" he asked, saying the Palestinians "can't cherry pick what they
want."
Palestinians say
Israel's blockade is throttling the economy of the small, impoverished
strip of land and the lives of its inhabitants.
Among their demands are the rebuilding and reopening of Gaza's airport and the establishment of a seaport.
But Israeli authorities
-- who retain control of Gaza's airspace, Mediterranean waters and their
shared border -- say that releasing their grip on what goes into and
out of the territory isn't feasible while Hamas and other groups are
still building up their arsenals of weapons.

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