From Israel Radio: Defense Minister Ehud Barak said Monday that there is no ceasefire agreement with Hamas and such an accord is not close. Barak said that only when the rocket fire from Gaza ceases, the terrorist attacks stop, and weapons smuggling drops significantly, will Israel consider agreeing to a truce.
Despite the recent drop in Kassam rocket fire towards Israel, Hamas officials have also said there is no formal truce with Israel. At the same time, Hamas officials have said that the group will stop the fire if Israel halts it military operations.
As interpreted by JTA.org: Israeli forces have dramatically scaled back operations in the Gaza Strip in what appears to be a bid to secure a de facto truce with Hamas.