US Presi. Biden presents ceasefire plan; Hamas responds positively but Israel rejects

On Friday, US President Joe Biden outlined a three-stage ceasefire plan aimed at de-escalating the conflict between Israel and Hamas that seemed to have claimed about 36,000 lives since the war began last October.

A senior US administration official confirmed that the four-and-a-half-page proposal had been endorsed by the Israeli government and presented to Hamas on Friday.

President Biden's proposal included an initial six-week phase in which Israeli forces would withdraw from populated areas of Gaza. It also involved a prisoner exchange, releasing several hostages, including women, the elderly, and the wounded, in exchange for hundreds of Palestinian prisoners, per CNBC News.

Israeli Prime Minister Benjamin Netanyahu, however, rejected the idea of a permanent ceasefire, noting that "Israel’s conditions for ending the war have not changed: the destruction of Hamas’s military and governing capabilities, the freeing of all hostages, and ensuring that Gaza no longer poses a threat to Israel." 

Speaking to ABC News on Sunday morning, US National Security Council spokesman John Kirby said that the US had "every expectation" that Israel would "say yes" to the proposed ceasefire deal if Hamas accepts.

"We're waiting for an official response from Hamas," he said, adding that the US hopes that both sides agree to start the first phase of the plan "as soon as possible".

Hamas welcomed US President Biden's cease-fire proposal for Gaza, affirming its readiness to deal positively with any proposal that offers a permanent cease-fire, complete withdrawal of Israel forces from Gaza, restructuring of the strip, return of displaced and a serious prisoner hostage exchange, Reuters reports.

Despite Hamas's positive response, Netanyahu's rejection of the ceasefire plan points to a significant obstacle to the proposed roadmap's implementation.

Market reaction

Amidst Israel’s firm stance on the ceasefire proposal, Hamas’s response is adding to the market’s optimism on hopes of a likely ceasefire. The US Dollar Index is losing 0.10% on the day to trade near 104.50 while the US S&P 500 futures, a risk barometer is up 0.30% so far. Meanwhile, Gold price is testing the key support near $2,330, as of writing.