Israeli Prime Minister Benjamin Netanyahu has rejected two key demands Hamas has made during indirect cease-fire talks, saying Israel will not withdraw from the Gaza Strip or release thousands of jailed militants.

During an event Tuesday in the occupied West Bank, Netanyahu again vowed that the war would not end without Israel's "absolute victory" over Hamas.

Yemen's Houthi rebels fired "several" missiles at a U.S. warship in the Red Sea, they said on Wednesday, hours after the U.S. military reported shooting down a missile.

"The naval forces of the Yemeni Armed Forces, with the help of God Almighty, fired several... naval missiles at the American destroyer USS Gravely in the Red Sea," the Huthi statement said.

U.S. and Mideast mediators appeared optimistic in recent days that they were closing in on a deal for a two-month cease-fire in Gaza and the release of over 100 hostages held by Hamas.

But on Tuesday, Israeli Prime Minister Benjamin Netanyahu rejected the militant group's two main demands — that Israel withdraw its forces from Gaza and release thousands of Palestinian prisoners — indicating that the gap between the two sides remains wide.

Israel's army has begun flooding Hamas's network of tunnels as intense fighting rages in Gaza, with the U.N. warning of the potential "collapse of the humanitarian system" in the territory after a funding row hit its Palestinian aid agency.

The epicentre of the fighting in recent weeks has been Khan Younis, southern Gaza's main city, where vast areas have been reduced to a muddy wasteland of bombed-out buildings, and where an AFP journalist witnessed people leaving town on Tuesday as explosions sounded nearby.

Aid groups condemned on Tuesday a decision by several countries to suspend funding for the U.N. Palestinian refugee agency (UNRWA), pointing to a "worsening humanitarian catastrophe" and "looming famine" in Gaza.

A number of key donors to UNRWA -- including the United States, Germany and Japan -- have announced they are suspending funding to the agency over Israel's accusations that some of its staff were involved in the October 7 Hamas attack.

Even the dead are not spared by the Hamas-Israel war raging in Gaza, with bodies dug up by Israeli troops and hurried burials happening in hospitals and even a school.

In Gaza City's Al-Tuffah district, shrouded corpses of Palestinians torn from their graves lay atop muddied earth.

U.S. forces may have mistaken an enemy drone for an American one and let it pass unchallenged into a desert base in Jordan where it killed three U.S. troops and wounded dozens more, officials said Monday.

Details of the Sunday attack emerged as President Joe Biden faced a difficult balancing act, blaming Iran and looking to strike back in a forceful way without causing any further escalation of the Gaza conflict.

A little-discussed United States military desert outpost in the far reaches of northeastern Jordan has become the focus of international attention after a drone attack killed three American troops and injured at least 34 others there.

The base, known as Tower 22, sits near the demilitarized zone on the border between Jordan and Syria along a sandy, bulldozed berm marking the DMZ's southern edge. The Iraqi border is only 10 kilometers (6 miles) away.

Israeli forces disguised as civilian women and medical workers stormed a hospital Tuesday in the occupied West Bank, killing three Palestinian militants in a dramatic raid that underscored how deadly violence has spilled into the territory from the war in Gaza.

The Palestinian Health Ministry said Israeli forces opened fire inside the wards of the Ibn Sina Hospital in the town of Jenin. The ministry condemned the raid and called on the international community to pressure Israel's military to halt such operations in hospitals. A hospital spokesperson said there was no exchange of fire, indicating that it was a targeted killing.

Israeli strikes in Syria on Monday killed eight people, including pro-Iran fighters, a war monitor said, in the latest such attack in the country against groups loyal to Tehran.

"Three Israeli missiles targeted a base belonging to Hezbollah and Iran's Revolutionary Guards in the Sayyida Zeinab district" south of Damascus, "killing at least eight people," Rami Abdel Rahman, director of the Syrian Observatory for Human Rights, told AFP.