U.S. officials say both Hamas and Israel are making concessions toward securing a deal, but tempered optimism with differences remaining on key issues.

U.S. and Arab mediators are working around the clock to hammer out a ceasefire deal between Israel and Hamas, sources close to the talks said, while in the Gaza Strip medics said Israeli strikes had killed 44 Palestinians on Thursday.

Israel and Hamas appear closer than they have been in months to agreeing to a ceasefire that could wind down the 14-month war in Gaza and bring home dozens of people held hostage there. But the sides have come close before,

The order included four residential block areas in a refugee camp where Israel claims Palestinian militants fired rockets from.

Talks over a truce have languished for months as Israel balanced multiple campaigns in Lebanon and, more recently, Syria.

Israeli officials say a ceasefire in Gaza is a more realistic prospect than at any time in the past year, suggesting a long-awaited deal to free hostages and boost aid to the beleaguered territory could be close.