Israel-Gaza updates: IDF says 2 hostages rescued from Gaza

Secretary of State Antony Blinken said he believes a hostage deal is still within reach, despite Israeli Prime Minister Benjamin Netanyahu’s earlier comments rejecting Hamas’ counteroffer.

"We had an opportunity to discuss with the Israeli government the response that Hamas sent last night to the proposal that the United States, Qatar and Egypt have put together to bring the remaining hostages and extend the humanitarian pause," Blinken said at a news conference in Israel Wednesday. "What I can tell you about these discussions is that while there are some clear nonstarters in Hamas' response, we do think it creates space for agreement to be reached and we will work at that relentlessly until we get there."

Blinken later added, "These things are always negotiations. It's not flipping a light switch."

Blinken said he plans to meet with the families of hostages on Thursday.

As for Israel’s growing offensive in Gaza, Blinken stressed that "any military operation that Israel undertakes needs to put civilians first and foremost in mind."

Blinken said he had outlined specific measures the U.S. expected to see during his "extensive" talks with Netanyahu and Israeli national security leaders.

He said Israel should open a border crossing between Israel and northern Gaza to help improve the flow of humanitarian aid.

-ABC News' Shannon Crawford

Freed Israeli hostages and families of those still being held hostage by Hamas are speaking out, pleading for Israeli Prime Minister Benjamin Netanyahu to agree to a hostage deal, after the prime minister on Wednesday rejected the current proposed deal.

Netanyahu called the deal "delusional," and described it as a "surrender" that would lead to another massacre.

Adina Moshe, who was released after being held hostage for 49 days, said Wednesday, "We love our country. ... But I want my country back and its morality that is gone."

"I fear for the lives and fates of the hostages," Moshe said. "I'm afraid we'll have nothing to pass on to our grandchildren and great-grandchildren. Please, prime minister: If you continue on this path, there will be no more hostages to release. Restore our trust -- release them now."

Sahar Calderon, a 16-year-old who was released after being held hostage for 54 days, said, "Every hour there was hell. . … A terrorist glared at me for 24 hours with murder in his eyes, and every minute I feared being raped."

Calderon’s father is still being held hostage.

"I am grateful to the government for bringing me back, but what about my father, who is abandoned anew every day, uncertain if he will live or die?" she said. "Bring him back -- do not make me lose faith in our country a second time."

Israeli Prime Minister Benjamin Netanyahu on Wednesday rejected the current proposed hostage and cease-fire deal, calling it "delusional," and describing it as a "surrender" that would lead to another massacre. But Netanyahu did not say negotiations were closed.

To the families of the hostages, Netanyahu said in Hebrew, "Your loved ones are always standing before my eyes. ... We do not stop working for the release of our abductees -- even now."

"The continuation of military pressure is a necessary condition for the release of the abductees," he said. "Surrendering to the delusional demands of Hamas ... not only will not lead to the release of the abductees, it will only invite another massacre."

Netanyahu also said it would be "a matter of months" to reach Israel's objectives and achieve "total victory" of completely dismantling Hamas in the Gaza Strip.

Netanyahu said he told Secretary of State Antony Blinken in their meeting Wednesday, "We are within touching distance of a complete victory, which will also be the victory of the entire free world -- not only of Israel."

Netanyahu also said the Israeli military operation will expand to the city of Rafah, where thousands of Gaza residents have fled and are living in makeshift shelters.

-ABC News' Anna Burd and Jordana Miller

Egypt and Qatar will co-host a new round of negotiations on the proposed hostage and cease-fire deal on Thursday in Cairo, Egyptian state TV reported.