Sinwar is taking a hawkish stance, wishing to extort more concessions from Israel, while Haniyeh is willing to concede to a six-week pause.
Humanitarian aid to Gaza has increased at a steady pace by airdrops and truck deliveries and is the highest since the outbreak of war, despite Hamas accusations.
Hamas terror chief Ismail Haniyeh made a televised statement on Wednesday calling on barricades at al-Aqsa Mosque at the start of Ramadan and Hamas's "flexible" stance on hostage negotiations.
Hamas claims flexibility in regards to a deal, however they remain ready to continue fighting. There is current talk of a 40-day cease-fore deal in exchange for 40 of the remaining hostages
Since the beginning of the conflict, there have been several protests by Gazan residents against the terrorist organization, but this is still a rather exceptional event.
Haniyeh claimed that Hamas had acted with "flexibility" during negotiations and gave a list of demands Hamas would not compromise on.
The IDF sharing a video of Yahya Sinwar in the Gaza tunnels wasn't meant for the Israeli public, but it was psychological warfare meant for Gazans, Sinwar, and even Ismail Haniyeh.
According to Hamas, the two parties discussed recent news from Gaza, including political and “on-the-ground” developments.
"I expect that Hamas will not reject the paper, but it might not give a decisive agreement either," said a Palestinian official speaking on condition of anonymity.
The ongoing silence would make it difficult for Israel to agree to a hostage exchange deal with the Hamas leadership, the sources stated.