Israel will not open an aid crossing into Gaza on Wednesday after Hamas failed to hand over the bodies of all the dead hostages taken during the 7 October attacks.
Officials said the Rafah crossing between Gaza and Egypt will not open - despite earlier reports suggesting otherwise.
Preparations are ongoing to open the crossing for the entry and exit of Gazans only, an Israeli official added.
On Tuesday, Israel said the crossing would remain closed and the flow of humanitarian aid into Gaza would be reduced after Hamas failed to hand over the bodies of all the dead hostages.
After all 20 remaining living Israelis kidnapped two years ago were returned on Monday, attention has turned to the victims who have died in captivity.
Of the 28 dead hostages, only eight have so far been returned.
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Four were returned late on Tuesday, via the Red Cross. Three of them have been identified as Uriel Baruch, 55, Eitan Levi, 53, and 19-year-old Tamir Nimrodi.
The identity of the fourth body is yet to be confirmed.
The four handed over on Monday were Guy Illouz, Bipin Joshi, Yossi Sharabi, and Daniel Peretz.
Sky's Middle East correspondent Adam Parsons said it's "clear Hamas doesn't know where all these bodies are", with fears they could be under rubble in parts of Gaza devastated by Israel's two-year bombardment.
Some of the fighters who had been guarding them have been killed.
The return of all the hostages, living and dead, is a key pillar of the deal agreed to by Israel and Hamas, heralded by US President Donald Trump as having brought "peace in the Middle East".
Israel - which has freed hundreds of Palestinian prisoners - had threatened to keep the Rafah crossing between Gaza and Egypt closed on Wednesday, and limit aid entering Gaza, due to Hamas's failure to return all the dead.
But Israeli public broadcaster Kan and the Times of Israel reported the government had decided to proceed with the opening of the crossing, and allow for humanitarian aid to be transferred.
Hostage families have urged their government to "finish the job" and get the remaining bodies home.
Two far-right ministers in Benjamin Netanyahu's government, Bezalel Smotrich and Itamar Ben-Gvir, said Israel should limit aid and use "military pressure" to ensure their return.
Trump: Hamas must disarm, or we will disarm them
Hamas is also facing questions over whether it's willing to comply with a longer-term requirement of the Gaza peace plan: that the group must disarm.
Photos and videos have emerged on social media in the past few days of Hamas fighters appearing to kill other Palestinians, whom they accused of collaborating with Israel.
Mr Trump told reporters that if the group didn't disarm, "we will disarm them".
"It will happen quickly and perhaps violently," he said in a meeting with Argentina's Javier Milei at the White House.
Mr Trump said he had received assurances from Hamas "through my people" that the group would disarm.
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But the president also appeared to suggest Hamas had "misrepresented" the number of hostages it will be able to return during ceasefire negotiations.
"We were told they had 26, 24 [bodies] of dead hostages, if we can use those terms," he added. "And it seems they don't have that number because we're talking about a much lesser number.
"I want them back. That's what they said. I want them back."
Hamas had agreed to a Monday deadline to return all the hostages.
Britain's Sir Keir Starmer has also called on Hamas to "honour the terms of the ceasefire" and release the remaining hostages, as he paid tribute to one of those returned to Israel on Monday.
The loss of Yossi Sharabi, who has British family, "will be felt deeply by his family after Hamas so cruelly drew out their horror and denied them the right to grieve", the prime minister said.
(c) Sky News 2025: Rafah crossing into Gaza will not open today, Israel confirms - as bodies of more hostages released