The announced peace agreement for Gaza is already showing clear signs of fragility. Hours after US President Donald Trump's triumphant declarations in Sharm el-Sheikh, the situation in the Gaza Strip continues to worsen: new attacks and casualties, and the Rafah crossing remaining closed paint a starkly different picture from the official optimism.

Hamas returned, on Tuesday night, the bodies of four more Israeli hostages, according to an announcement by the International Red Cross and as reported by the Israel Defence Forces in a joint statement with the Shin Bet.

On Tuesday night, Hamas returned the bodies of four more Israeli hostages, according to the office of Israeli Prime Minister Benjamin Netanyahu.

Earlier, Israel had said it was considering what action to take until all hostages taken by Hamas on 7 October were returned. Hamas told mediators it would transfer the bodies of four more Israelis at 10pm local time, an official involved in the operation told Reuters.

Rafah sealed, ongoing humanitarian crisis

In a further blow to the truce, Israel has announced that, contrary to prior agreements, it will cut the flow of aid to the enclave by half, allowing from Wednesday only 300 trucks to enter the famine-stricken Strip per day, instead of 600.

This closure is explained by Hamas' failure to return the bodies of the remaining hostages.

Hamas and the Red Cross have said that retrieving the bodies of dead hostages is difficult due to the widespread destruction in Gaza, with some remains reportedly in areas under Israeli control, according to mediators.

The US-proposed ceasefire plan had called for all hostages, living and dead, to be handed over within 72 hours, meaning Monday. It also provided a mechanism if that deadline was missed, stating that Hamas should share information about deceased hostages and “exert maximum effort” to carry out the handover as soon as possible.

Dozens dead despite truce, Hamas executes opponents in public

On the ground, the situation is dramatic. According to local health sources, 44 Palestinians have been killed and 29 injured in the last 24 hours as a result of Israeli attacks and Hamas executions in the Gaza Strip, despite the truce formally being in force.

Among the victims, six people were hit in raids on Gaza City and Khan Younis, while five civilians were killed in Shujaiya by Israeli drones while trying to inspect their destroyed homes. Other casualties were reported in Jabaliya al-Balad and the Al Fakhari area, east of Khan Younis.

Israeli forces said they opened fire to "neutralise a threat" after spotting "suspects" attempting to cross the new "yellow line".

Dozens of deaths were also reported as a result of Hamas' offensive against opposing groups, as well as Bedouin families, who in recent months had sided against the militants and tried to ensure the safety of humanitarian aid trucks arriving in the Strip. Several videos on social media, verified by BBC Verify, show Hamas members publicly executing opponents, often accused of treason and collusion with Israel.

Long-term challenges unresolved

Key questions remain over Gaza’s future, including whether Hamas will disarm and who will govern and rebuild the territory. The broader issue of Palestinian statehood also remains unresolved.

Egyptian Foreign Minister Badr Abdelatty said 15 Palestinian technocrats have been chosen to administer Gaza, with the backing of Israel, Hamas, and other Palestinian factions.

Residents are urging authorities to act quickly to restore basic services. “There is no infrastructure, electricity, water or anything that is fit for life,” said Mohamad Abu Hajras, one of the many displaced.

On Tuesday, the UN development agency, together with the European Union and the World Bank, estimated that rebuilding Gaza will cost around €60 billion.

Under the ceasefire, Israeli forces have withdrawn to positions held in August, before the latest offensive on Gaza City. Several heavily damaged Palestinian neighbourhoods remain under Israeli control, with residents warned not to return to their homes.