Israel says it is cutting all electricity supplies to Gaza, effective immediately, in a major escalation of its blockade of the strip.
Energy Minister Eli Cohen made the announcement on Sunday evening, a week after the Netanyahu government announced all aid deliveries would be halted.
Hamas released a statement condemning the move to cut off electricity supplies and halt aid as "a collective punishment and a complete war crime".
Hamas also accused Israel of breaching signed agreements and international law, stating: "The occupation's practices constitute a flagrant violation of the signed agreements, and a violation of all humanitarian laws and customs, in a new confirmation that the occupation does not respect its obligations."
The Israeli government has been trying to pressure Hamas into accepting a temporary extension of the first phase of the ceasefire in Gaza, in a bid to secure the release of more Israeli hostages.
Hamas had rejected that proposal, accusing Israel of trying to avoid negotiations on a lasting peace in the strip and labelling the aid restriction as a war crime.
"Enough with the talk, it’s time for action!" Mr Cohen posted on social media platform X.
This latest development will put immense pressure on Gaza's energy infrastructure, with the majority of the territory's power supplies coming from Israel along a number of transmission lines.
Hamas holds direct talks with the US on hostage release
Hamas confirmed it had held unprecedented direct talks with the Trump administration about the release of an American-Israeli hostage, ahead of the next round of Gaza ceasefire talks beginning in Qatar.
An Israeli delegation is being dispatched to Doha on Monday to "advance the negotiations" on the future of the ceasefire, which came into force on January 19.
Over the weekend Hamas said discussions with Egyptian officials, acting as mediators in the war, about the next phase of the fragile truce had been "positive".
A senior Hamas official has since confirmed to the Reuters news agency that there have been direct discussions with the US government about the fate of 21 year old hostage Edan Alexander, who holds American and Israeli citizenship.
Last week President Donald Trump said US officials were speaking to Hamas, and his Middle East envoy Steve Witkoff is expected to travel to the negotiations in Doha on Tuesday.
"Several meetings have already taken place in Doha, focusing on releasing one of the dual-nationality prisoners," Hamas official Taher Al-Nono told Reuters.
"We have dealt positively and flexibly, in a way that serves the interests of the Palestinian people.
"We informed the American delegation that we don't oppose the release of the prisoner within the framework of these talks."
The United States has previously avoided direct negotiations with groups such as Hamas, given they are a declared terrorist organisation under US law.
President Trump's hostage envoy, Adam Boehler, said the US had decided to hold talks with Hamas to "jump start some negotiations that were in a very fragile place," adding there could be a development "within weeks".
"I wanted to say to Hamas 'what is the end game that you want here?'" he told CNN.
"I think it was a very helpful meeting."
Mr Boehler said he understood Israel's concerns about holding direct talks, but insisted it was necessary.
"We're the United States, we're not an agent of Israel, we have specific interests at play and we did communicate back and forth," he said.
'Phase two' negotiations delayed by weeks
Talks on 'phase two' of the Gaza ceasefire had stalled even before they properly began, with Hamas accusing Israel of avoiding the negotiations in an effort to scuttle the peace process.
The first phase of the ceasefire formally ended a week ago, and negotiations on the next steps were meant to start in early February — but never did.
Last Sunday, Israel blocked all aid entering Gaza, after Hamas rejected a proposal to temporarily extend the first phase of the ceasefire through to mid-April.
Israeli Prime Minister Benjamin Netanyahu said it had been developed by Mr Witkoff, and that half of the remaining 59 hostages — living and dead — still held by Hamas in Gaza would have been released on day one of the extended ceasefire.
The remaining captives would have been freed once a permanent truce was brokered.
Hamas criticised the proposal, labelling it as a departure from the agreed phased approach to peace in Gaza and an attempt to further delay discussion on matters such as the full Israeli military withdrawal from the strip.
Over the weekend, Hamas spokesperson Hazem Qassem said it was up to Israel to "show seriousness" in the further negotiations, adding that direct talks with the United States could pressure Israel to shift its position.
Israeli strikes in Gaza have continued, despite the ceasefire officially holding in the war-ravaged strip.
On Sunday, the Israel Defense Forces (IDF) confirmed it had killed a number of Palestinians in northern Gaza it said were "terrorists".
The IDF said they had been "attempting to plant an explosive device in the ground".
Rocket warning sirens rang out across near the town of Holit in southern Israel, near the Gaza border, early on Sunday morning.
The IDF soon said it was likely the result of IDF activity in the area, rather than anything being fired by Hamas out of Gaza.
Unit to 'resettle Gazans' to be set up
The Trump pitch to take control of Gaza, resettling Palestinians in neighbouring countries ahead of rebuilding, continues to loom large over the talks.
Hamas and Arab nations have rejected the idea, insisting permanent displacement of the population cannot happen.
But Israel's controversial far-right finance minister, Bezalel Smotrich, said work was underway within the Israeli government to begin the process of resettlement.
"There are preparations for a large Migration Directorate within the Defense Ministry," he said.
"If we take out 5,000 [Gaza residents] a day, it would take a year.
"The logistics are complicated, because you need to know who is going to what country."
