Israel's Defence Forces say they are preparing for Phase Two of their campaign in Gaza City. Sixty thousand reservists are being called up, with another 20,000 extending their service. Brigadier General Effie Defrin, the army's spokesperson, says Israeli troops are already holding positions on Gaza City's outskirts. 'We will deepen the damage to Hamas in Gaza City, a stronghold of governmental and military terror of the terrorist organisation. We will deepen the damage to the terror infrastructure above and below the ground and sever the population's dependence on Hamas. We are not waiting. We have begun the preliminary operations and the first stages of the attack on Gaza City. IDF forces are already holding the outskirts of Gaza City." The mobilisation is significant for Israel, a country of fewer than 10 million people. It comes just days after hundreds of thousands of Israelis rallied for a ceasefire. But as Israel prepares its offensive, Palestinians living under bombardment see the move very differently. In Gaza, where most of the Strip's two million people have been displaced, residents condemned Israel's plans. Displaced father Tarek Seraj says the expansion could only mean more devastation. "Of course, the talks about expanding the (military) operation in the Gaza Strip means that we will see more destruction, killings, devastation, starvation and siege." Others, like Leila Shanar, express doubts about Israel's commitment to truce talks. "From one side, we hear that there are proposals (ceasefire) and that there is acceptance on these proposals but regarding the occupation I believe that it is not serious to accept these proposals and the evidence to this that they are recruiting big groups of reservists, the evacuations happening in the north, the displacement in Sabra, the killings and genocide happening. So, this occupation is not serious in achieving a truce and ending the war." The Hamas-run Health Ministry in Gaza reports over 62,000 deaths since the conflict began, roughly half women and children. Independent verification remains difficult, but United Nations officials warn of famine and collapsing basic services. Meanwhile, international diplomacy is stalling, with the US and Europe divided over the path to peace. Mike Huckabee, the United States ambassador to Israel, has criticised European recognition of Palestinian statehood, calling it counterproductive. "I do think that without any question, the noise that has been made by European leaders recently - this conference in New York - is having the counterproductive effect that they probably think that they want. If they believe that, unilaterally, calling for a two-state a Palestinian state recognition immediately brings them closer, the sad truth is it's taking them further away." President Donald Trump's administration has given Israel wide latitude in the war, insisting Hamas must disarm before a ceasefire. But European nations, including Britain and France, argue that recognising Palestinian statehood is key to a two-state solution. As leaders clash over diplomacy, pressure is mounting inside Israel itself, from families still waiting for loved ones to come home. Families and supporters marched near the Gaza border on Wednesday, demanding a deal before further escalation. Daniel Lifshitz, whose grandfather was killed in captivity, is urging leaders to prioritise negotiations. 'Calling first of all, first of all to immediately come to the negotiation table and close the hostage deal. This hostage deal is a comprehensive hostage deal, it's just part 'A' of a comprehensive hostage deal as well as ambassador (US Special Envoy Steve) Witkoff told us before.' Another marcher, Etie Israeli, echoed that sentiment. 'I am here only because of one reason. We need the 50 hostages home. Then, after the hostages will be here, then after we can go in and do what we need to do.' Their appeals come as humanitarian workers warn that conditions in Gaza are worsening by the day, despite ongoing aid deliveries. The Gaza Humanitarian Foundation, an Israeli-backed US aid contractor, says it is struggling to keep operations going under threats from Hamas. Its executive director, John Acree, describes the pressure staff are under. "Many of our local workers have had to move their families repeatedly to avoid being targeted. In some cases, Hamas has directly contacted relatives and warned them to force their loved ones to quit or face consequences." He adds that existing food distribution sites are insufficient. 'Everyone recognises that the four sites we do operate are not enough. We need more aid, we need to open more sites, so we push for that. We work together with the Israeli government to discuss that, to discuss locations, to discuss how many etc. In terms of definite planning or definite decisions. No, not yet. But we certainly support that. We are ready to expand. We are to pull more aid in.' Aid groups, including the UN, have accused Israel of deadly attacks on civilians seeking aid convoys. The military denies this, saying it only fires warning shots. And while Gaza reels under siege, attention is also turning to the West Bank, where a controversial settlement decision risks extinguishing hopes of a Palestinian state. Israel has approved construction in an area known as E-1, east of Jerusalem. Critics say it would cut the West Bank in two, making a future Palestinian state impossible. Bedouin community leader Atallah Al-Jahelin says his people face demolition orders. "This area includes around 22 Bedouin communities, not just Jabal al-Baba where we are today. There are approximately 7,000 people living in these communities, along with about 20,000 herds of livestock. All of this, our livestock and animals, represents the core of Palestinian Bedouin life. If these communities are removed, Palestinians will lose their economic foundation, their livelihoods, and their basic way of life. The impact will go beyond the Bedouin population —the entire Palestinian market and economy will suffer from the loss of these vital sources of livestock." The decision has drawn condemnation from Palestinian officials, who say it undermines international recognition of Palestinian statehood. As the war nears its second anniversary, Israel is mobilising for its next offensive, Palestinians brace for deeper suffering, and the international community remains bitterly divided.