The fight between Israel and Hamas in Gaza has entered its 12th month with little sign of respite for the Palestinian territory or hope for Israeli hostages still held captive.

The chances of a truce that would also swap Palestinian prisoners jailed by Israel for hostages held by Hamas appeared slim, with both sides sticking doggedly to their positions.

Hamas is demanding a complete Israeli withdrawal, but Prime Minister Benjamin Netanyahu insists troops must remain along the Gaza-Egypt border.

The United States, Qatar and Egypt have all been mediating in an effort to bring about a ceasefire in the offensive that Gaza authorities say has killed at least 40,939 people. According to the United Nations human rights office, most of the dead are women and children.

Israel is at loggerheads with the United States over talks to forge a truce in the Gaza operation.

US Secretary of State Antony Blinken has said “90 per cent is agreed” and urged Israel and Hamas to finalise a deal. Netanyahu denied this, telling Fox News: “It’s not close.”