Joe Biden 'optimistic' about Gaza ceasefire deal - as Lebanon says 10 killed by Israeli strike

"As of an hour ago, we're still in play. I'm optimistic. It's still far from over. Just a couple more issues, I think we've got a shot," he told reporters on Friday.

His comments come amid rising tensions in the region in recent weeks, with Lebanon reporting at least 10 people being killed by an Israeli strike there.

Its health ministry said the strike, in which five others were wounded, hit a residential building in the city of Nabatieh, southern Lebanon, early on Saturday.

The Israel Defence Forces claimed it struck a Hezbollah weapons storage facility in the overnight attack, adding it hit several others areas in southern Lebanon it says were "a threat" or "military structures".

It comes after a deadly rocket strike in the Israeli-occupied Golan Heights that Israel blamed on Hezbollah.

Israel responded by killing a top Hezbollah commander in the suburbs of Beirut.

Hezbollah has also vowed to retaliate against Israel, as has Iran, for the killing of the political chief of the Palestinian Hamas group, Ismail Haniyeh, in Tehran.

The tensions form the backdrop to the ongoing negotiations between Hamas and Israel seeking an agreement to end the devastating 10-month war.

In a joint statement, the US, Qatar and Egypt said Washington had presented a new proposal that built on points of agreement over the past week, closing gaps in a way that could allow rapid implementation of a deal.

The two days of talks wrapped up in Qatar on Friday night and will reconvene in Cairo next week. Mediators would keep working on the proposal in the meantime, the joint statement said.

"The path is now set for that outcome, saving lives, bringing relief to the people of Gaza, and de-escalating regional tensions," the US, Qatar an Egypt said in the statement.

Separately, the Associated Press reported early on Saturday that a US official said mediators are preparing for a possible ceasefire and hostage release deal in Gaza.

A new "implementation cell" was being established in Cairo in advance, the official added.

The cell would focus on logistics, including freeing hostages, providing humanitarian aid for Gaza and ensuring that the terms of the pact are met.

Israel issued a vague statement saying it appreciated the mediators' efforts, and a statement from Hamas did not sound enthusiastic about the latest proposal.

Palestinian health authorities said this week that more than 40,000 people had been killed by Israel's military campaign in the Gaza Strip in the wake of the 7 October attack, in which 1,200 Israelis were killed.

-SKY NEWS