Halevi, while delivering the situational assessment, commented on the strike that killed Rafa’a Salameh, commander of the Khan Yunis Brigade, which was confirmed earlier on Sunday.
Israel views Hamas’s denials as covering up how embarrassed they were at a crucial point in the hostage-ceasefire negotiations.
The assassination of Mohammad Deif, which has yet to be confirmed, could change the balance of the course of war and hostage negotiations a former Shin Bet official argues.
Salameh was by Deif's side, and according to the sources, his body was recovered and buried immediately.
Hamas later released a statement on its official Telegram channel denying the claims that the negotiations would "halt."
'Despite the attempted assassination, Hezbollah will not operate in a more significant way than it is currently', says Prof. Amatzia Baram.
Deif's survival up until this point shows that the damage has been done and cannot be reversed.
Commander of Hamas's Khan Yunis Brigade, Rafa Salama, was likely killed in the same strike, and no hostages were killed.
"Go forth, light and heavy, and strive with your money and your lives in the path of God," the Hamas leader added.
Issa was reportedly hiding in Nusirat, in central Gaza, at the time of the strike, and it is unclear whether the Hamas leader was killed in the event.