The first phase of the six-week-old truce expired at the weekend and talks on the deal's future have hit an impasse.
Trump had earlier floated a widely condemned plan to relocate Palestinians from Gaza, prompting Arab leaders who met in Cairo this week to support an alternative.
Trump’s warning followed his administration’s revelation that it held unprecedented direct talks with Hamas -- listed as a “terrorist” group by Washington -- focused on American hostages in Gaza.
“Despite all the enemy’s attempts at evasion, lies and deception... we preferred and still prefer to adhere to the agreement in order to spare the blood of our people,“ Abu Obaida, spokesman for the Ezzedine al-Qassam Brigades, the armed wing of Hamas, said in a video statement.
Israel killed Hamas chief Yahya Sinwar as well as the movement's military leader Mohammed Deif during the war in Gaza that began with Hamas's October 7, 2023 attack on Israel.
“To the People of Gaza: A beautiful Future awaits, but not if you hold Hostages. If you do, you are DEAD! Make a SMART decision. RELEASE THE HOSTAGES NOW, OR THERE WILL BE HELL TO PAY LATER!”
Leaning on a cane outside a makeshift shelter in Khan Yunis, southern Gaza, Mohammed Salim dismissed Trump's talk of turning the territory into hell.
Israelis 'worried'
“These threats complicate matters regarding the ceasefire agreement and encourage the occupation to avoid implementing its terms,“ Qasim said, urging the United States to pressure Israel to enter the ceasefire’s second phase, which is envisioned as leading to a lasting truce.
James Dorsey, an honorary fellow at the National University of Singapore’s Middle East Institute, said the direct talks would give Hamas “a sense of having been legitimised strongly”.
The first phase -- negotiated by the United States, Qatar and Egypt -- brought a period of relative calm during which Israeli hostages were exchanged for Palestinian prisoners and humanitarian assistance flowed into Gaza.
'Good-faith'
Washington had refused direct contact with Hamas since designating it a terrorist organisation in 1997.
Five Americans are believed to remain among the hostages -- four have been confirmed dead and one, Edan Alexander, is believed to be alive.
“Hamas’ actions have inflicted immense suffering, AND THEIR REIGN OF TERROR MUST BE STOPPED,“ the White House posted on X.
Arab leaders this week endorsed an alternative plan that would finance Gaza's reconstruction through a trust fund, and would see the return of the Palestinian Authority to the territory.
“We need more discussion about it, but it’s a good-faith first step from the Egyptians,“ Steve Witkoff, Trump’s Middle East envoy, told reporters in Washington.
The State Department, however, said Egypt’s plan “does not meet the expectations.”
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