Prime Minister Benjamin Netanyahu expressed significant optimism on October 4th, 2025, stating that details of a deal for the release of all hostages are finalized and expected to be completed in the coming days, according to Israeli media reports. Netanyahu indicated he believes Hamas will agree to the terms without requiring a full Israeli withdrawal from the Gaza Strip. However, some analysts expressed caution, noting the unpredictable nature of such negotiations and the lack of official Hamas agreement to the terms presented. Netanyahu's optimism was shared in a statement suggesting that an announcement regarding the return of hostages could occur during Sukkot. This sentiment follows intensive negotiations involving White House officials Steve Whitakoff and Jared Kushner in Cairo, aimed at securing a hostage release and ceasefire. The Israeli military had shifted to defensive operations in Gaza on October 4th, ceasing initiated attacks, following a directive from President Trump. Analysts noted that the IDF's public statements highlighting Hamas's alleged concessions could potentially undermine the ongoing talks. Despite Netanyahu's positive outlook, the official agreement from Hamas remains pending, with commentators highlighting that the group has not yet officially consented to any of the prime minister's terms. Previous reports indicated that proximity talks were expected to begin in Cairo involving all mediators, with Egyptian officials anticipating Hamas would demonstrate seriousness and flexibility. Key points of contention have included the IDF's withdrawal, Hamas's continued existence, and the release of all kidnapped individuals. In related developments on October 4th, the IDF announced the discovery of a significant terror tunnel containing a weapons manufacturing workshop adjacent to the Jordanian Hospital in Gaza City. This tunnel, reportedly occupied by Hamas commanders, underscores concerns about the exploitation of civilian infrastructure. The IDF is actively mapping this underground network and expanding operations. The grandson of Hamas founder Sheikh Ahmed Yassin was also reported killed in an Israeli airstrike in Gaza City's Al-Sabra neighborhood on the same day. Egyptian bulldozers are awaiting approval to enter Gaza for restoration efforts. President Trump had previously stated on October 4th that a peace deal in Gaza was close and had urged Prime Minister Netanyahu to use it as an opportunity to win the war. Whitekoff had reportedly informed interlocutors of a US plan to facilitate the return of abductees. Meanwhile, associates of Minister Ben Gvir stated he would not resign from the government at this time, with Hamas's failure to adhere to terms being a red line, though other reports suggested Ben Gvir might agree to the release of 250 prisoners with an emphasis on Hamas's existence. Warnings remain in effect for residents to avoid northern Gaza Valley due to its designation as a dangerous fighting zone.