U.S. puts new proposal on table to try to close Gaza deal gaps

• The Biden administration has said a hostage and ceasefire deal is key to de-escalating tensions in the Middle East and preventing a regional war.

The latest: President Biden told reporters in the Oval Office on Friday that "we are closer to a deal than we have ever been," adding he doesn't want "to jinx" it but "we might have something there." Biden said, "we are not there yet but we are closer than we were three days ago."

• Biden is expected to speak on the phone with the Emir of Qatar and the President of Egypt on Friday about the deal, according to a source with knowledge.
• Qatari Prime Minister Mohammed bin Abdulrahman Al Thani spoke on the phone with the acting Iranian foreign minister and briefed him on the Gaza deal talks.
• It was the second phone call between them in the last two days. The Qatari foreign ministry said al-Thani stressed to his Iranian counterpart the need to de-escalate the situation in the region.

Driving the news: The U.S., Qatar and Egypt said in the statement that the talks over the last two days in Doha "were serious and constructive and were conducted in a positive atmosphere."

• "The U.S. with support from Egypt and Qatar, presented to both parties a bridging proposal that is consistent with the principles laid out by President Biden on May 31, 2024 and Security Council Resolution No. 2735," they said.
• "This proposal builds on areas of agreement over the past week, and bridges remaining gaps in the manner that allows for a swift implementation of the deal."
• A source with knowledge of the talks told Axios: "We got more progress over the last two days than the last six weeks combined."

Friction point: Hamas and Israel have each said they are in agreement with different versions of the proposed deal and interpret differently Biden's speech in May laying out the details of the proposal.

• A Hamas source told al-Jazeera the group was briefed by the mediators about Thursday's talks and said what is being presented now doesn't coincide with what Hamas accepted on July 2.
• The Israeli Prime Minister's Office said "Israel's fundamental principles are well known to the mediators and the U.S., and Israel hopes that their pressure will lead Hamas to accept the principles of May 27, so that the details of the agreement can be implemented."
• U.S. officials stressed both the Israeli May 27 and Hamas July 2 versions don't represent their current position and the bridging proposal is trying to close that gap and give each side some of what it wants.

State of play: Working teams from the U.S., Qatar, Egypt and Israel will continue technical work over the coming days on the details of implementation of the deal, the statement said.

• According to the statement, the issues that still need to be concluded are the arrangements for extensive humanitarian provisions to Gaza and the specifics relating to the hostages and Palestinian prisoners who will be released as part of the deal.

What's next: Another summit between the senior mediators and negotiators — CIA director Bill Burns, the Qatari prime minister, director of the Israeli Mossad and the Egyptian head of intelligence — will take place in Cairo before the end of next week "with the aim to conclude the deal under the terms put forward today," the statement said.

• Secretary of State Antony Blinken is expected to travel to the region on the weekend to continue pushing for a deal, sources briefed on the trip said.
• On Sunday, Blinken is expected to land in Israel and meet Prime Minister Netanyahu on Monday, the Israeli Prime Minister's office said.

The big picture: U.S. Secretary of Defense Lloyd Austin spoke with Israeli Minister of Defense Yoav Gallant on Friday about instability in the region, Pentagon Press Secretary Maj. Gen. Pat Ryder said in a statement.

• Austin told Gallant the U.S. "continues to monitor attack planning from Iran and its proxies and is well-postured across the region to defend Israel and protect U.S. personnel and facilities," a readout of the call said.
• Austin and Gallant also discussed "progress towards securing a ceasefire and the release of all hostages, including eight Americans, held captive by Hamas in Gaza."

An Israeli official said Israeli intelligence indicates a decrease in the Iranian missile and drone units' alert after several days on high alert in preparation for a possible attack on Israel.

• The official said Israeli intelligence believes the Iranians want to see how the Gaza hostage and ceasefire talks develop before moving forward with a possible attack.

Editor's note: This story has been updated with details throughout.