JERUSALEM>> International efforts to broker a cease-fire between Israel and Hamas suffered a setback on Wednesday as Israel reportedly recalled its negotiating team and Prime Minister Benjamin Netanyahu accused Hamas of hobbling the high-stakes negotiations by sticking to “delusional” demands.

Netanyahu’s remarks came hours after local media reported that the Israeli leader had ordered an Israeli delegation not to continue talks in Cairo, raising concerns over the fate of the negotiations and sparking criticism from the families of the roughly 130 remaining captives, about a fourth of whom are said to be dead.

The relatives of the hostages said Netanyahu’s decision amounted to a “death sentence” for their loved ones.

The mediation efforts, steered by the United States, Egypt and Qatar, have been working to bring the warring sides toward an agreement that might secure a truce in the monthslong war, which has killed more than 28,000 Palestinians, most of them women and children, according to local health officials.

The fighting has destroyed vast parts of Gaza, displaced most of the territory’s population and sparked a humanitarian catastrophe.

“In Cairo, Israel did not receive any new proposal from Hamas on the release of our captives,” Netanyahu said in a statement. “A change in Hamas’ positions will allow progress in the negotiations.”

Hamas meanwhile said Netanyahu was to blame. Senior Hamas official Osama Hamdan told The Associated Press that Israel had put forward a proposal that strayed from agreements reached during earlier cease-fire talks.

On Tuesday, CIA chief William Burns and David Barnea, the head of Israel’s Mossad spy agency, attended the talks in the Egyptian capital, but there were no signs of a breakthrough. The talks continued Wednesday at a lower level, even as deadly violence persisted both in the Gaza Strip and along Israel’s border with Lebanon, where fighting has simmered since the war broke out.

Israeli media reported Wednesday that Netanyahu told his delegation not to return to the talks unless Hamas softens its demands.

The sides have been far apart on their terms for a deal. Netanyahu has vowed to continue the war until “total victory” over Hamas and the return of all the remaining hostages.

Hamas has said it will not release all the captives until Israel ends its offensive, withdraws from Gaza and releases a large number of Palestinian prisoners, including top militants. Netanyahu has rejected those demands, calling them “delusional.”

A group representing the families of the hostages called Netanyahu’s reported decision to keep the delegation away from the talks “scandalous” and said the families would set up a “mass barricade” outside the Israeli Defense Ministry unless Netanyahu agreed to meet them.

More than 100 hostages were released during a weeklong cease-fire in November in return for 240 Palestinians imprisoned by Israel.

The war, which erupted after Hamas launched a surprise attack into Israel on Oct. 7, killing some 1,200 people, mostly civilians, and taking around 250 captive, ground on even as the talks appeared to be stalling.

Palestinians began evacuating the main hospital in the southern Gaza town of Khan Younis, according to videos shared by medics Wednesday. Weeks of heavy fighting had isolated the medical facility and claimed the lives of several people inside it.

Now in its fifth month, the war has devastated Gaza’s health sector, with less than half of its hospitals only partially functioning as scores of people are killed and wounded in daily bombardments. Israel accuses the militants of using hospitals and other civilian buildings as cover.

Khan Younis is now the main target of a rolling ground offensive that Israel has said will soon be expanded to Gaza’ southernmost city of Rafah. Some 1.4 million people — over half the territory’s population — are crammed into tent camps and overflowing apartments and shelters in Rafah, on the Egyptian border.