Shin Bet (Israel Security Agency/ISA) chief Yuval Diskin told the government Sunday that "there are initial signs that Hamas is becoming less intransigent about the possible ceasefire."
"Their leadership is under heavy pressure and wants the Israeli operation halted, while looking for an honorable exit that will not humiliate them," he told the ministers in the weekly cabinet session.
The session, which is normally held in Jerusalem, was held in Tel Aviv, in the military-government complex known as Hakirya.
Hamas leaders under pressure
"There is a willingness on the part of Hamas to reach an accomodation," Diskin said. "The Hamas leadership abroad and in Gaza is under pressure and is acting to achieve a ceasefire," he explained. "It is disappointed with the Arab countries which are not standing by its side."
"Everything Hamas has created in Gaza is under real threat and its leadership feels an existential danger," he added.
Close range urban fighting
IDF Chief of Staff Lt.-Gen. Gabi Ashkenazi said that more than 400 Arabs, most of them Hamas terrorists, have been killed in Operation Cast Lead so far. "Not much is left of the Hamas government," he said.
The fighting between the IDF and Hamas is mostly being carried out at close range and in urban settings, where Hamas prefers to engage the IDF.
Military Intelligence Chief Maj.-Gen. Amos Yadlin told the cabinet that "Hamas understands that it made a strategic mistake in violating the 'calm.' It has been dealt a serious blow," he said.
"Dozens of command posts have been hit, ammunition depots and [weapon] production infrastructure have been destroyed," Yadlin continued. "The ability to smuggle through tunnels has been impaired. The group's leaders are busy taking care of themselves. Hamas finds itself hated and isolated."
Police Commissioner Dudi Cohen said 600 Arabs had been arrested within Israel over the past week, and 230 are still behind bars in connection with violent demonstrations against the Gaza operation. 50 police officers were injured in the rioting by Arab citizens of Israel.