Israel intends to impose a “hell plan” on Gaza this week to force an agreement on the extension of the ceasefire, sources have said.

It could involve cutting off electricity and water, as well as potential efforts to again displace the civilian population from the north of the enclave, and comes after Benjamin Netanyahu’s decision on Sunday to halt humanitarian supplies.

Government sources have briefed journalists that they hope this will force Hamas to look again at a US proposal to extend the current ceasefire until after the period of Ramadan and Passover.

If the terror group refused, the ratcheting measures would lead to a resumption of all-out war in the Gaza Strip, government officials said.

The Israel Defense Forces (IDF) have already stepped up strikes on alleged suspicious activity in Gaza in recent days.

The 42-day first phase of the hostage-ceasefire deal ended at the weekend, with no agreement in place for what happens next.

Under the original agreement, phase one would give way to phase two, which should involve the return of all living and dead hostages, further releases of Palestinian prisoners, the complete withdrawal of the IDF from Gaza and serious discussions about the enclave’s political future.

Israel has been reluctant to contemplate the latter two points, instead backing a proposal by Steve Witkoff, the US Middle East envoy, of releasing half the remaining hostages on the first day of a Ramadan-Passover extension, with the remaining half released at the end, providing that an agreement about Gaza’s future had been reached.

Hamas has rejected the plan and called for phase two to go ahead as originally outlined. 

Aid agencies have sounded alarm at the decision to halt aid convoys.