Israel says it is stopping the entry of all goods and supplies into the Gaza Strip and warning of “additional consequences” if Hamas doesn’t accept a new proposal to extend a fragile ceasefire.

Hamas accused Israel of trying to derail the existing ceasefire agreement and said its decision to cut off aid was “cheap extortion, a war crime and a blatant attack” on a truce, which took hold in January. Both sides stopped short of saying the ceasefire had ended.

The first phase of the ceasefire, which included an increase in humanitarian assistance to the strip, expired on Saturday. The two sides have yet to negotiate the second phase, in which Hamas was to release dozens of the remaining hostages in return for an Israeli pullout and a lasting ceasefire.

An Israeli official told the Associated Press Sunday that the decision to suspend aid was made in coordination with the Trump administration. A spokesman for the U.S. National Security Council, Brian Hughes, tells Axios that it supports the move.

“Israel has negotiated in good faith since the beginning of this administration to ensure the release of hostages held captive by Hamas terrorists,” Brian Hughes said. “We will support their decision on next steps given Hamas has indicated it’s no longer interested in a negotiated ceasefire.”

Hundreds of aid trucks have entered Gaza daily since the ceasefire began on January 19, and it was unclear what the immediate impact of the aid cutoff would be.

Israel Says Proposal Is Backed by the United States

Israel said the new proposal, which it said came from America’s Mideast envoy, Steve Witkoff, called for extending the ceasefire through Ramadan — the Muslim holy month that began over the weekend — and the Jewish Passover holiday, which ends on April 20.

Under that proposal, Hamas would release half the hostages on the first day and the rest when an agreement is reached on a permanent ceasefire, according to Prime Minister Netanyahu’s office.

Foreign Minister Gideon Saar said Israel was prepared to negotiate over the next phase but insisted on more hostages being freed during the talks. He said Israel had received a side letter from the Biden administration saying there was no automatic transition between the phases of the truce.

“We fulfilled all our commitments (under Phase 1) until the very last day, which was yesterday,” he told a press conference. “Our position is that during negotiations, hostages should be released.”

Hamas warned that any attempt to delay or cancel the ceasefire agreement would have “humanitarian consequences” for the hostages and reiterated that the only way to free them was through implementing the existing deal, which did not specify a timeline for freeing the remaining captives.

Hamas has said it is willing to free the hostages all at once in Phase 2, but only in return for the release of more Palestinian criminals, a permanent ceasefire and the withdrawal of Israeli forces.

An Egyptian official said Hamas and Egypt would not accept a new proposal aimed at returning the remaining hostages without ending the war. The official noted that the agreement had called on the two sides to begin negotiations over Phase 2 in early February.

Ceasefire Marred by Disputes

Under the first, six-week phase of the ceasefire, Hamas released 25 Israeli hostages and the bodies of eight others in exchange for the release of nearly 2,000 Palestinians criminals by Israel. Israeli forces pulled back from most of Gaza and Israel allowed a surge of humanitarian aid to enter.

But the first phase was marred by repeated disputes, with each side accusing the other of violations.

Israeli strikes have killed dozens of Palestinians who approached its forces or entered areas in violation of the truce. Israel carried out an airstrike on Palestinians who were planting an explosive device in northern Gaza near the border on Sunday.

Hamas paraded the captives — some of whom were emaciated — before crowds in public spectacles that Israel and the United Nations said were cruel and degrading.

Hamas said Israel’s aid suspension was another violation, saying the ceasefire and aid deliveries were supposed to continue during negotiations over Phase 2.