Indirect talks in Sharm El-Sheikh are focused on a US peace plan aimed at resolving the ongoing conflict in Gaza. The discussions involve the potential exchange of Israeli hostages for Palestinian prisoners, with Israeli Prime Minister expressing optimism about a deal. Hamas has partially agreed to the proposals but has not committed to disarmament or relinquishing governance in Gaza. The talks coincide with the anniversary of a deadly Hamas-led attack, and the humanitarian situation in Gaza remains dire, with thousands killed and aid blocked. International leaders have expressed support for the peace initiative, but significant challenges remain as violence continues.