Israel has moved in 'significant way' but Hamas remains barrier to Gaza hostage deal, US says

Israeli military vehicles manoeuvre, near the Israel-Gaza border

WASHINGTON (Reuters) - Israel has moved in a "significant way" but Hamas is the barrier to a deal that would see fighting in Gaza paused and hostages released, State Department spokesperson Matthew Miller said on Monday.

Hamas rejected the latest proposal for a deal and has said any new hostage deal must bring about an end to the Gaza war and withdrawal of all Israeli forces.

"Israel moved a significant way in submitting that proposal. And there was a deal on the table that would achieve much of what Hamas claims it wants to achieve, and they have not taken that deal," Miller told a press briefing.

The United States is still pursuing a deal that would allow for a ceasefire lasting at least six weeks and allow more aid into Gaza, Miller added.

(Reporting by Humeyra Pamuk, Ismail Shakil and Simon Lewis; Editing by Chris Reese and Nick Zieminski)