Blinken urges Israel to seek enduring deal, as officials say a limited cease-fire has been discussed

TEL AVIV, Israel (AP) — Secretary of State Antony Blinken said Wednesday that Israel needs to pursue an “enduring strategic success” in Gaza after its tactical victories against Hamas, urging it to seek a deal that would end the war and bring back dozens of hostages.

He spoke before traveling from Israel to Saudi Arabia on his 11th visit to the region since the war began. Air raid sirens sounded in Tel Aviv shortly before his departure as Israel intercepted two projectiles fired from Lebanon — the latest in Israel's war with Hezbollah — and a puff of smoke could be seen in the sky from Blinken's hotel.

“Israel has achieved most of the strategic objectives when it comes to Gaza," Blinken told reporters before boarding his plane. “Now is the time to turn those successes into an enduring strategic success.”

“There really are two things left to do: Get the hostages home and bring the war to an end with an understanding of what will follow,” he said.

Meanwhile, officials with the U.S., Israel and Egypt confirmed that a proposal for a limited cease-fire and hostage release has been discussed in recent days.

The United States sees a new opportunity to revive cease-fire efforts after the killing of top Hamas leader Yahya Sinwar by Israeli forces in Gaza last week. But there’s no indication that the warring parties have modified their demands since talks stalled over the summer.

There was also no immediate sign of a breakthrough after Blinken met with Prime Minister Benjamin Netanyahu and other top Israeli officials on Tuesday.

Israel blamed the failure of talks on Sinwar's hard-line stance, but Hamas says its demands for a lasting cease-fire, full Israeli withdrawal and the release of a large number of Palestinian prisoners have not changed. Hamas blamed the failure of the talks on Israel's demand for a lasting military presence in parts of Gaza.

Egypt has suggested the possibility of a short pause in fighting in which Hamas would release a handful of hostages and humanitarian aid deliveries would be increased, especially in northern Gaza, an Egyptian official told The Associated Press.

The official, who was not authorized to brief media and spoke on condition of anonymity, said Egypt and fellow mediator Qatar had discussed the idea with the United States but it was not yet a firm proposal.

A senior State Department official confirmed that a proposal for a limited hostage release has been discussed in recent days but that no determination had been made, even after Blinken's meetings with Israeli officials and families of the hostages on Tuesday.

An Israeli official said Israel's Security Cabinet had discussed an Egyptian initiative centered on a 12-day cease-fire and the release of six hostages. The official spoke on condition of anonymity to discuss the closed-door talks.

There was no immediate comment from Hamas, which has rejected such ideas in the past, saying it is intent on ending the war. It is still holding around 100 hostages captured in its Oct. 7, 2023, attack that triggered the war, around a third of whom are believed to be dead.

Israel has dramatically reduced the amount of humanitarian aid allowed into Gaza as it wages another major operation in the territory's hard-hit north.

Blinken reiterated a warning that hindering humanitarian aid could force the U.S. to scale back the crucial military support it has provided to Israel since the war began. “There’s progress made, which is good, but more progress needs to be made," he told reporters, without elaborating.

The U.N. humanitarian office says Israel has severely restricted aid operations since the start of its offensive in Jabaliya, a densely populated urban refugee camp in northern Gaza dating back to the 1948 war surrounding Israel's creation.

It said one critical mission, to rescue around 40 people trapped in the rubble in Jabaliya, had been repeatedly denied since Friday.

Northern Gaza, including Gaza City, was the first target of Israel's ground operation and has been encircled by Israeli forces since late last year. Most of the population heeded Israeli evacuation warnings early in the war, but an estimated 400,000 people have stayed.

The U.N. estimates that 60,000 people have been displaced within northern Gaza since the start of the operation in Jabaliya, the latest in a series of mass displacements.

The north has been more heavily destroyed than other areas of Gaza, with entire neighborhoods obliterated. Israel has prevented Palestinians who fled the north from returning to their homes, a key demand from Hamas in the cease-fire talks.

The renewed offensive in the north has raised fears among Palestinians that Israel intends to implement a plan proposed by former generals in which civilians would be ordered to leave the north and anyone remaining would be starved out or killed.

Far-right ministers in Netanyahu's Cabinet say Israel should remain in Gaza and re-establish Jewish settlements there.

Blinken said the U.S. officials “fully reject” any Israeli reoccupation of Gaza and that it was not the policy of the Israeli government.

The State Department official said Blinken questioned Netanyahu and members of his government about the so-called Generals' Plan. The Israelis denied having such a plan and said the perception of it was damaging, the official said. The official said the Americans pressed the Israelis to publicly distance themselves from it.

Hamas-led militants killed some 1,200 people, mostly civilians, and abducted another 250 when they stormed into southern Israel a year ago.

Israel’s offensive has killed over 42,000 Palestinians, according to local health officials, who don’t distinguish combatants from civilians but say more than half the dead are women and children. It has displaced around 90% of Gaza’s population of 2.3 million, forcing hundreds of thousands into squalid tent camps.

Magdy reported from Cairo. Associated Press writer Julia Frankel in Jerusalem contributed.

Follow AP’s Gaza coverage at  https://apnews.com/hub/israel-hamas-war

U.S. Secretary of State Antony Blinken, left, meets Saudi Crown Prince Mohammed bin Salman in Riyadh, Saudi Arabia, Wednesday Oct. 23, 2024. (Nathan Howard/Pool via AP)

U.S. Secretary of State Antony Blinken, left, meets Saudi Crown Prince Mohammed bin Salman in Riyadh, Saudi Arabia, Wednesday Oct. 23, 2024. (Nathan Howard/Pool via AP)

U.S. Secretary of State Antony Blinken speaks with members of the media at Ben Gurion International Airport before departing for Riyadh, Saudi Arabia, in Tel Aviv, Israel Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

U.S. Secretary of State Antony Blinken speaks with members of the media as he arrives at Ben Gurion International Airport before departing for Riyadh, Saudi Arabia, in Tel Aviv, Israel, Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

U.S. Secretary of State Antony Blinken speaks with members of the media as he arrives at Ben Gurion International Airport before departing for Riyadh, Saudi Arabia, in Tel Aviv, Israel, Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

U.S. Secretary of State Antony Blinken speaks with members of the media as he arrives at Ben Gurion International Airport before departing for Riyadh, Saudi Arabia, in Tel Aviv, Israel, Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

U.S. Secretary of State Antony Blinken speaks with members of the media as he arrives at Ben Gurion International Airport before departing for Riyadh, Saudi Arabia, in Tel Aviv, Israel, Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

U.S. Secretary of State Antony Blinken speaks with members of the media as he arrives at Ben Gurion International Airport before departing for Riyadh, Saudi Arabia, in Tel Aviv, Israel, Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

U.S. Secretary of State Antony Blinken speaks with members of the media as he arrives at Ben Gurion International Airport before departing for Riyadh, Saudi Arabia, in Tel Aviv, Israel, Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

U.S. Secretary of State Antony Blinken speaks with members of the media as he arrives at Ben Gurion International Airport before departing for Riyadh, Saudi Arabia, in Tel Aviv, Israel, Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

U.S. Secretary of State Antony Blinken waves as he departs for Riyadh, Saudi Arabia, from Ben Gurion International Airport in Tel Aviv, Israel, Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

U.S. Secretary of State Antony Blinken waves as he departs for Riyadh, Saudi Arabia, from Ben Gurion International Airport in Tel Aviv, Israel, Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

U.S. Secretary of State Antony Blinken looks as he arrives at Ben Gurion International Airport before departing for Riyadh, Saudi Arabia, in Tel Aviv, Israel, Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

Israel's Iron Dome anti-missile system fires to intercept as air raid sirens sound in Tel Aviv, Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

Israel's Iron Dome anti-missile system fires to intercept as air raid sirens sound in Tel Aviv, Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

U.S. Secretary of State Antony Blinken waves as he departs for Riyadh, Saudi Arabia, from Ben Gurion International Airport in Tel Aviv, Israel, Wednesday, Oct. 23, 2024. (Nathan Howard/Pool Photo via AP)

Wall Street is on track to open with losses Wednesday as more high-profile companies roll out quarterly financial results.

Futures for the S&P 500 fell 0.2% before the opening bell, while futures for the Dow Jones Industrial Average gave up 0.5%.

McDonald's tumbled 7% in extended hours after U.S. regulators reported that an E. coli outbreak linked to the fast food giant's Quarter Pounder hamburgers sickened dozens of people across the U.S., including one who died. The U.S. Centers for Disease Control and Prevention said 49 people in 10 states reported eating at McDonald’s before falling ill and most mentioned eating Quarter Pounders.

Coca-Cola reported higher-than-expected revenue in the third quarter as higher prices offset lower sales volumes.

Boeing shares were unchanged ahead what could be one of the most consequential days in years for the troubled aerospace manufacturer. The company is expected to report a huge third-quarter loss, introduce its new CEO on his first earnings call, and learn if machinists will end a strike that has crippled the company’s aircraft production for more than a month. Boeing shares are down nearly 40% this year.

Starbucks skidded 4.7% overnight after the Seattle coffee chain's fourth-quarter profits fell well short of Wall Street's targets and pulled its 2025 guidance. Starbucks said its expanded fall product offerings — such as its Pumpkin Spice Latte — did not drive store visits, with same store sales declining 6% year-over-year. The results were preliminary, with final fourth-quarter results coming next week.

Shares of Spirit Airlines took off on reports that the budget airline and Frontier had revived merger talks. Its shares rose 25% before the bell.

Reporting later today are Coca-Cola and Tesla.

In Asia, Japan’s benchmark Nikkei 225 slipped 0.8% to close at 38,104.86 as the dollar rose against the Japanese yen.

Tokyo Metro Co.’s stock surged 45% during its trading debut on early Wednesday. The company raised 348.6 billion yen ($2.3 billion) in its initial public offering, making it Japan’s largest IPO since SoftBank Corp. went public in 2018.

Chinese markets rose for a second day after the central bank cut its one-year and five-year Loan Prime Rates on Monday. Hong Kong’s Hang Seng added 1.3% to 20,760.15, and the Shanghai Composite gained 0.5% to 3,302.80.

State media have reported that a state-backed think tank has proposed issuing 2 trillion yuan ($281 billion) in special government bonds to create a market stabilization fund aiming to further ease the hidden debt pressures and inject confidence into Chinese markets.

“Yet, despite the bold proposal, there’s a sense that Beijing remains in reactionary mode, playing catch-up rather than getting ahead of the game,” Stephen Innes, managing partner at SPI Asset Management, said in a commentary.

Australia’s S&P/ASX 200 edged 0.1% higher to 8,216.00. South Korea’s Kospi was 1.1% higher at 2,599.62.

Taiwan's Taiex slipped 0.9%, while the Sensex in India gained 0.2%.

European markets were lower at midday, with Germany’s DAX and Britain's FTSE 100 each falling 0.4% and the CAC 40 in Paris losing 0.8%.

U.S. stocks have slowed their record-breaking momentum this week under increasing pressure from rising Treasury yields.

The yield on the 10-year Treasury ticked up to 4.22% early Wednesday, well above the 4.08% level it was at on Friday. Higher yields for Treasurys can make investors less willing to pay high prices for stocks, which some analysts say are already over valued.

Treasury yields have been climbing following a raft of reports showing the U.S. economy remains stronger than expected. That’s good news for Wall Street, because it bolsters hopes that the economy can escape from the worst inflation in generations without the painful recession that many had worried was inevitable.

Traders are now largely expecting the Fed to cut its main interest rate by half a percentage point more through the end of the year, according to data from CME Group. A month ago, some of those same traders were betting on the federal funds rate ending the year as much as half a percentage point lower than that.

In other dealings early Wednesday, benchmark U.S. crude gave back a chunk of Tuesday's gains, falling $1.43 to $70.31 a barrel. Brent crude, the international standard, also fell $1.43 to $74.61 a barrel.

The U.S. dollar rose to 152.79 Japanese yen from 151.08 yen. The euro fell to $1.0779 from $1.0800.

A train arrives at the Wall Street subway station in New York's Financial District on Wednesday, Oct. 23, 2024. (AP Photo/Peter Morgan)

A banner for LATAM Airlines hangs from the front of the New York Stock Exchange on Tuesday, Oct. 22, 2024, in New York. (AP Photo/Peter Morgan)

A banner for LATAM Airlines hangs from the front of the New York Stock Exchange on Tuesday, Oct. 22, 2024, in New York. (AP Photo/Peter Morgan)

A currency trader works near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won, center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Oct. 23, 2024. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won, right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Oct. 23, 2024. (AP Photo/Ahn Young-joon)

Currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Oct. 23, 2024. (AP Photo/Ahn Young-joon)