President Donald Trump issued a final ultimatum to Hamas on Wednesday after it was reported that U.S. officials were engaged in "ongoing talks and discussions" with Hamas officials — the first such engagement since the group was designated a foreign terrorist organization by the State Department in 1997.

The talks marked a significant departure for the United States, which has generally refused to talk directly with groups Washington has designated as terrorist organizations.

At around the same time as the bodies of the hostages were handed over, a Red Cross convoy carrying dozens of released Palestinian prisoners left Israel's Ofer prison.

Israel has introduced what it said was a new U.S. ceasefire plan and is trying to force Hamas to accept it by imposing a siege on the Gaza Strip.

Experts say the US President's team are trying to make sense of his erratic demands - which is 'almost impossible'

As the first phase of the truce in Gaza ends, the two sides are continuing negotiations but also preparing for a possible return to war.

Ir Amim, an Israeli rights group, says Israel demolished a record number of Palestinian homes — 181 — in annexed east Jerusalem last year.

Hamas described Israel’s actions as “a serious violation of international law and a blatant war crime committed in full view of the world.”