Tamir Hayman analyzes the latest reports about an offer by Hamas to release three female soldiers in exchange for 150 captured terrorists, of whom 90 have received life sentences; then, if that exchange happens successfully, a second stage of the deal will begin.

If this does happen, Israel will release all the serious prisoners who had been sentenced to life and who are associated with Hamas, which will leave Israel without any bargaining chips for the second stage. In practice, Israel will release everyone who is important to Hamas without getting back all the hostages. In this situation, it’s evident that Israel will approach the second stage of the negotiations in the most unfavorable way possible. Hamas will achieve all its demands in the first stage, except for a commitment from Israel to end the war completely.

How does this relate to the fighting in Rafah? Hayman explains:

In the absence of an agreement or compromise by Hamas, it is detrimental for Israel to continue the static situation we were in. It is positive that new energy has entered the campaign. . . . The [capture of the] border of the Gaza Strip and the Rafah crossing are extremely important achievements, while the ongoing dismantling of the battalions is of secondary importance.

That being said, Hayman is critical of the approach to negotiations taken so far:

Gradual hostage trades don’t work. We must adopt a different concept of a single deal in which Israel offers a complete cessation of the war in exchange for all the hostages.

While the current Egyptian president, Abdel Fattah el-Sisi, has never been friendly to Hamas, his government has objected strenuously to the Israeli campaign in the southernmost part of the Gaza Strip. Haisam Hassanein explains why:

Cairo has long been playing a double game, holding Hamas terrorists near while simultaneously trying to appear helpful to the United States and Israel. Israel taking control of Rafah threatens Egypt’s ability to exploit the chaos in Gaza, both to generate profits for regime insiders and so Cairo can pose as an indispensable mediator and preserve access to U.S. money and arms.

Egyptian security officials have looked the other way while Hamas and other Palestinian militants dug tunnels on the Egyptian-Gaza border. That gave Cairo the ability to use the situation in Gaza as a tool for regional influence and to ensure Egypt’s role in the Palestinian-Israeli conflict would not be eclipsed by regional competitors such as Qatar and Turkey.

Some elements close to the Sisi regime have benefited from Hamas control over Gaza and the Rafah crossing. Media reports indicate an Egyptian company run by one of Sisi’s close allies is making hundreds of millions of dollars by taxing Gazans fleeing the current conflict.

Moreover, writes Judith Miller, the Gaza war has been a godsend to the entire Egyptian economy, which was in dire straits last fall. Since October 7, the International Monetary Fund has given the country a much-needed injection of cash, since the U.S. and other Western countries believe it is a necessary intermediary and stabilizing force. Cairo therefore sees the continuation of the war, rather than an Israeli victory, as most desirable. Hassanein concludes:

Adding to its financial incentive, the Sisi regime views the Rafah crossing as a crucial card in preserving Cairo’s regional standing. Holding it increases Egypt’s relevance to countries that want to send aid to the Palestinians and ensures Washington stays quiet about Egypt’s gross human-rights violations so it can maintain a stable flow of U.S. assistance and weaponry. . . . No serious effort to turn the page on Hamas will yield the desired results without cutting this umbilical cord between the Sisi regime and Hamas.