Israeli Prime Minister Benjamin Netanyahu's office has announced that aid will stop entering Gaza from today as the six-week ceasefire expires, in a move described by Hamas as "cheap blackmail".
Under the terms of the truce, Israel was required to increase aid delivered to the war-ravaged strip.
But Mr Netanyahu's office says Hamas's decision to reject an extension of the temporary ceasefire has forced its hand.
Not only will Israel prevent the additional aid being offered, it will now stop all aid.
In response, Hamas released a statement on Sunday describing Mr Netanyahu's decision as "cheap blackmail" and a "coup" on the ceasefire agreement.
It urged the mediators to compel Israel to end the punitive measures against Gaza.
The move comes hours after Israel backed a US proposal to extend the truce into April through Ramadan and Passover — a plan which would have involved the release of half the remaining 59 hostages in Gaza on day one, and the rest once a permanent ceasefire was agreed on.
The proposal came from the Trump administration's Middle East envoy, Steve Witkoff.
The move was announced in a statement from Mr Netanyahu's office.
"With the end of Phase 1 of the hostage deal, and in light of Hamas's refusal to accept the Witkoff outline for continuing talks — to which Israel agreed — Prime Minister Netanyahu has decided that, as of this morning, all entry of goods and supplies into the Gaza Strip will cease," it said.
"Israel will not allow a ceasefire without the release of our hostages.
"Convoys of goods trucks that are now seen on their way to Gaza arrive at the crossing only to find that it is closed and that there is no entry."
The prime minister's office did not elaborate on the decision but warned of "additional consequences" if Hamas did not accept what Israel said was a US proposal for an extension of the ceasefire.
Despite the increase of aid going into Gaza during the six-week ceasefire, there have still been shortages of supplies, including food, water and shelter.
The news came as Muslims in Gaza and around the world began the fasting month of Ramadan.
The first phase of the ceasefire expired on Saturday, having come into effect on January 19, halting 15 months of fighting between Hamas and Israel.
It allowed the release of 33 Israeli and five Thai hostages for about 1,900 Palestinian prisoners and detainees.
It is believed 24 hostages are still alive, with another 39 presumed to be dead, from Hamas's attack on Israel on October 7, 2023.
ABC/wires