Palestinians voice optimism as Gaza truce holds

CAIRO (AP) - Palestinian officials voiced cautious optimism Thursday, hinting at progress in Egyptian-mediated negotiations with Israel to bring an end to the fighting in Gaza and secure new arrangements for the war-battered territory.

But with the sides' demands still seemingly irreconcilable, that optimism may be premature and a deal not so close in the making.

Israel and Hamas are observing a five-day cease-fire which began at midnight Wednesday, in an attempt to allow talks between the sides in Cairo to continue. The negotiations are meant to secure a substantive end to the monthlong war and draw up a roadmap for the coastal territory, which has been hard-hit in the fighting.

Israeli officials have largely kept quiet about the negotiations. But militant groups represented in Cairo said progress was being made toward a deal - a stark turnaround from earlier posturing.

"The war is now behind us, and the chances for an agreement on a lasting cease-fire are encouraging," Ziad al-Nakhaleh, deputy leader of the Islamic Jihad militant group, told The Associated Press. "Though we didn't get all that we wanted, there was progress here and there."

Israeli government spokesman Mark Regev would not comment Thursday on the Cairo talks.

Beyond demands for a seaport and airport, Hamas is also seeking an end to a crippling blockade imposed by Israel and Egypt in 2007, when Hamas seized control of the coastal strip. The blockade has greatly limited the movement of Palestinians in and out of the territory of 1.8 million people. It has also restricted the flow of goods into Gaza and blocked virtually all exports.

Israel says the closure is necessary to prevent arms smuggling, and officials are reluctant to make any concessions that would allow Hamas to declare victory.

Israel, meanwhile, is demanding that Hamas be disarmed, or at the very least, be prevented from re-arming, a term that is a virtual non-starter for the militant group.

While the cease-fire was largely holding, it got off to a rocky start, highlighting the fragility of the talks and the risk of slipping back into conflict.

Israel's military said eight rockets were launched at Israel but that the firing stopped early Thursday morning. Israel retaliated with airstrikes on rockets and rocket-launching sites in Gaza, the military said.