TEL AVIV, Feb 8, 2024 (BSS/AFP) - US Secretary of State Antony Blinken said Wednesday an agreement to return hostages from Gaza remained possible and called for protecting civilians as Israel prepares military action in packed Rafah.

Blinken's call for moderation put a brave face on remarks shortly beforehand by Israeli Prime Minister Benjamin Netanyahu, who rejected Hamas calls for a ceasefire as part of the Qatari-brokered hostage deal and vowed military action in Rafah.

"While there are some clear non-starters in Hamas's response, we do think it creates space for agreement to be reached, and we will work at that relentlessly until we get there," Blinken told reporters in Tel Aviv hours after meeting Netanyahu.

Asked about Netanyahu's rejection, Blinken said he is "not going to speak for Israel" but that the Hamas counter-proposal at least offered an opportunity "to pursue negotiations" on hostages.

Blinken said he would meet Thursday with families of hostages and was committed to seeking the release of all of them.

"The sheer agony not knowing the fate of your loved one, it's almost unimaginable," Blinken said.

Four months after the unprecedented October 7 attack by Hamas in Israel, Netanyahu also vowed to move on the city of Rafah in Gaza's far south, where more than one million Palestinians have sought refuge.

Blinken stopped short of calling on Israel not to strike Rafah, after UN Secretary-General Antonio Guterres said he was "alarmed" by the prospects of the operation, but voiced concern.

"Israel has the responsibility -- has the obligation -- to do everything possible to ensure civilians are protected," Blinken said.

Any "military operation that Israel undertakes needs to put civilians first and foremost in mind", he said of Rafah.

Blinken said he told Netanyahu and other officials that the death toll each day in Gaza "remains too high".

He said he also voiced alarm to Netanyahu about "actions and rhetoric" by members of his far-right government that "inflame tensions that undercut international support and place greater restraints on Israel's security".

"Israelis were dehumanised in the most horrific way on October 7. The hostages have been demonised every day since," Blinken said.

"But that cannot be a licence to dehumanise others. The overwhelming majority of people in Gaza had nothing to do with the attacks on October 7."