JERUSALEM/CAIRO – Israel and the United States recalled their delegations from Gaza ceasefire talks for consultations on Thursday, with U.S. envoy Steve Witkoff accusing the Palestinian militant group Hamas of failing to act in good faith in the talks.

It marked the latest setback in efforts to secure a deal that would bring a ceasefire to Gaza, secure the release of Israeli hostages held by Hamas, and bring respite to Palestinians suffering a sharply worsening humanitarian crisis.

Witkoff said mediators had made a great effort but “Hamas does not appear to be coordinated or acting in good faith”. “We will now consider alternative options to bring the hostages home and try to create a more stable environment for the people of Gaza,” he wrote on X.

There was no immediate reaction from Hamas.

An Israeli official with knowledge of the talks said Hamas’ response to the latest ceasefire proposal “does not allow for progress without a concession” by the group but that Israel intended to continue discussions.

Both Israel and Hamas are facing pressure at home and abroad to reach a deal following almost two years of war, with the humanitarian situation inside Gaza deteriorating and Israelis worried about the conditions in which hostages are being held.

Dozens of people have starved to death in Gaza the last few weeks as a wave of hunger crashes on the enclave, according to local health authorities.

British Prime Minister Keir Starmer said the suffering and starvation in Gaza was an “unspeakable and indefensible” humanitarian catastrophe and called on Israel to urgently let in aid.

“While the situation has been grave for some time, it has reached new depths and continues to worsen. We are witnessing a humanitarian catastrophe,” Starmer said in a statement.

He will hold an emergency call with French and German partners on Friday to discuss what could be done to “stop the killing and get people the food they desperately need,” he said.

The Gaza health ministry said two more people had died of malnutrition. The head of Shifa Hospital in Gaza City said the two were patients suffering from other illnesses who died after going without food for several days.

Earlier in the day, there had been some apparent signs of progress in the mediation.

A senior Hamas official told Reuters that there was still a chance of reaching a ceasefire deal but it would take a few days because of what he called Israeli stalling.

A senior Israeli official had been quoted by local media as saying the new text was something Israel could work with.

But, Israel’s Channel 12 said a rapid deal was not within reach, with gaps remaining between the two sides, including over where the Israeli military should withdraw to during any truce.

Witkoff’s team did not immediately respond to a request to explain the Hamas demands that led to his withdrawal of the U.S. negotiators.

The Hostages Families Forum, representing the family members of those held in Gaza, expressed concern at the recall of the Israeli team. “Each day that passes endangers the hostages’ chances of recovery and risks losing the ability to locate the fallen or gain vital intelligence about them,” it said.

Pepper Spray Fired at Aid Site

Women going to fetch aid for their families on Thursday said U.S. contractors organizing distribution asked them to come to pick up goods and then fired tear gas and pepper spray at them.

“The Americans said “go, go”, and then said no, get back. They sprayed us with pepper spray so we went away. Five minutes later they shot tear gas at us … is this American humanitarian aid?” said Mervat al-Sakani.

Asked for comment, a spokesperson for the aid organization – the Gaza Humanitarian Foundation – said a limited amount of pepper spray was used “to prevent civilian injury due to overcrowding”, adding that GHF “didn’t want people to get hurt.” The spokesperson said women-only aid distribution had been “a major success” overall.

GHF, a U.S.-and Israeli-backed organization, began distributing food packages in Gaza at the end of May.

The U.N. has called the GHF’s model unsafe and a breach of humanitarian impartiality standards, which GHF denies.

The U.N. rights office said on July 15 it had recorded at least 875 killings within the preceding six weeks in the vicinity of aid sites and food convoys in Gaza – the majority of them close to GHF distribution points.

Most of those deaths were caused by gunfire that locals have blamed on the Israeli military. The military has acknowledged that civilians were harmed, saying that Israeli forces had been issued new instructions with “lessons learned”.

Israel, which cut off all supplies to Gaza from the start of March and reopened it with new restrictions in May, says it is committed to allowing in aid but must control it to prevent Hamas diverting it.

Israel says it has let in enough food for Gazans, and blames the United Nations for being slow to deliver it; the U.N. says it is operating as effectively as possible under conditions imposed by Israel.

The war began when Hamas killed some 1,200 people and took 251 hostages in its October 7 attacks on Israel, according to Israeli tallies. Israel has since killed nearly 60,000 Palestinians in Gaza, according to Gaza health authorities.

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(Reporting by Nidal Al-Mughrabi, Emily Rose, Samia Nakhoul, Ahmed Elimam and Maayan Lubell, Matt Spetalnick in Washington; Michelle Nichols in New York; Writing by Crispian Balmer and Tom Perry, Editing by Clarence Fernandez, Peter Graff, Timothy Heritage and Diane Craft)