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Pope Leo XIV and his top diplomats told Israel's president Thursday that a two-state solution was the "only way out of the war," as the Vatican called for a permanent ceasefire in Gaza, the release of all hostages, and entry of humanitarian aid to famine-stricken Palestinians there.Related video above: Parts of Gaza are experiencing man-made famineThe Vatican issued an unusually detailed statement following Leo's meeting with Israeli President Isaac Herzog, who also met with the Vatican secretary of state, Cardinal Pietro Parolin, and foreign minister, Archbishop Paul Gallagher. Herzog, for his part, said he had asked Leo to meet with families of the hostages, and called for intensified international efforts to secure their release.The audience marked the first by history's first American pope with the Israeli head of state. Leo spoke by telephone with Israeli Prime Minister Benjamin Netanyahu in July after an Israeli shell slammed into the only Catholic church in Gaza, killing three people and wounding the parish priest.The Vatican has tried to maintain its tradition of diplomatic neutrality throughout the war, calling for the return of hostages while denouncing Israel's attacks against civilians in Gaza. But both Pope Francis before, and Leo since his election in May, have voiced mounting outrage at Israel's actions in Gaza, with the late pope calling for an investigation to determine if they constituted genocide.In its statement after the audience, the Vatican said that during the talks the Vatican conveyed hope "that negotiations would resume promptly so that, with goodwill and courageous decisions, as well as the support of the international community, it would be possible to secure the release of all hostages, urgently achieve a permanent ceasefire, facilitate the safe entry of humanitarian aid into the most affected areas, and ensure full respect for humanitarian law, as well as the legitimate aspirations of both peoples."It repeated the Holy See's longstanding support for a Palestinian state. "Discussions focused on how to guarantee a future for the Palestinian people and peace and stability in the region, with the Holy See reiterating the two-state solution as the only way out of the ongoing war," it said.Herzog said Israel was striving "in every possible way" to bring the hostages home and was determined to work for "peace, tranquility and stability" in the region. In a statement, Herzog's office said he described Israel's efforts to facilitate aid to Palestinians in Gaza, and said the talks also included discussions about the rise of antisemitism worldwide and the importance of protecting Christian minorities in the Middle East."The very fact that Pope Leo XIV, who has only just begun his tenure, received the president of the state of Israel in the Vatican is a very important statement. It reflects the great significance of the relationship between the Holy See and the State of Israel, and of course with the Jewish people, and the importance of the very sensitive issues and challenges we experience today," he said.Herzog's role as Israeli president is largely ceremonial. A former Labor Party leader, he has called for unity and compromise since taking office.Herzog's office had initially said the audience came at Leo's invitation, but the Vatican disputed that.Hamas took 251 hostages on Oct. 7, 2023, in the attack that also killed about 1,200 people and triggered the war. Most hostages have been released during previous ceasefires or other deals. Israel has rescued eight hostages alive. Of the 50 still in Gaza, Israeli officials believe around 20 are still alive.Before his death in April, Pope Francis regularly called for the release of hostages and met with their relatives at the Vatican. But he also labeled Israel's attacks in Gaza "immoral" and disproportionate and called for an investigation to determine if they constituted genocide. Israel has denied the genocide charge, saying it only targets militants and takes measures to spare civilians. It blames civilian deaths on Hamas because the militants operate in densely populated areas.Leo, who was elected history's first American pope in May, has continued Francis' tough line. He has called for the release of hostages but demanded Israel stop the "collective punishment" and forced displacement of Palestinians in Gaza.Last week, the 69-year-old former missionary called for a permanent ceasefire, the safe entry of humanitarian aid, and for humanitarian law to be fully respected.More than 64,000 Palestinians have been killed in the nearly two-year war in the Gaza Strip, local health officials said Thursday, as Hamas and Israel reiterated their incompatible demands for ending the fighting sparked by the militant group's 2023 attack.Israeli strikes killed 28 people, mostly women and children, overnight and into Thursday, according to hospitals, as Israel pressed ahead with its offensive in famine-stricken Gaza City. Brig. Gen. Effie Defrin, the military spokesman, said Israeli forces control 40% of the city and that the operation would expand "in the coming days."In the occupied West Bank, Israelis established a new settlement in a Palestinian city, according to an anti-settlement monitoring group.The latest strikes came as Israeli troops were operating in parts of Gaza City with plans to take over all of it. The most populous Palestinian city is home to around a million people, many of whom have already been displaced multiple times.Shifa Hospital in Gaza City received 25 bodies, including nine children and six women, after Israeli strikes hit tents housing displaced people, according to hospital records. Among those killed was a 10-day-old baby. Another three people were killed in southern Gaza, according to Nasser Hospital in Khan Younis.Maha Afana said the strikes woke her up in the middle of the night as she slept in a tent in Gaza City with her children. When she checked on them, she found the bodies of her son and daughter, drenched with blood. "I started screaming," she said.Associated Press footage of the aftermath showed charred tents and debris. The sound of further Israeli bombardment echoed in the background."What did those children do to the state of Israel? They didn't carry a knife or artillery. They were just sleeping," said Hayam Basous, who lost a relative in the strike.There was no immediate comment from the Israeli military, which says it only targets militants and tries to avoid harming civilians. It blames civilian deaths on Hamas, saying militants are entrenched in densely populated areas.Death toll risesGaza's Health Ministry said that 64,231 Palestinians have been killed since the start of the war. The latest update includes around 400 people who were presumed missing but whose deaths it says have been confirmed.The ministry doesn't say how many of those killed in the war were militants or civilians. It says women and children make up around half of the dead.The ministry is part of the Hamas-run government and staffed by medical professionals. Its figures are seen as a reliable estimate of wartime deaths by U.N. agencies and many independent experts. Israel has disputed them without providing its own toll.Hamas-led militants killed around 1,200 people, mostly civilians, and abducted 251 people in their attack on southern Israel on Oct. 7, 2023. Most have since been released in ceasefires or other agreements.No visible progress in ceasefire effortsHamas released a statement late Wednesday saying that it was open to returning all 48 hostages it still holds — around 20 of them believed by Israel to be alive — in exchange for Palestinian prisoners, a lasting ceasefire, the withdrawal of Israeli forces from all of Gaza, the opening of border crossings, and a start to the daunting challenge of rebuilding Gaza.Israeli Prime Minister Benjamin Netanyahu's office dismissed the offer as "spin" and said that the war would continue until all the hostages are returned, Hamas is disarmed, and Israel has full security control of the territory, with civilian administration delegated to others.Talks on a temporary ceasefire that would have seen some of the hostages returned broke down last month when U.S. Middle East envoy Steve Witkoff walked away, blaming Hamas. The militant group later accepted a proposal that Hamas and Arab mediators said was almost identical to an earlier one accepted by Israel, but there's been no public indication that talks have resumed.Israel and the U.S. have recently hinted at pursuing a comprehensive deal in which all the remaining hostages would be released at once.New settlement in West Bank cityAn anti-settlement watchdog group said Israelis have established a new settlement in the heart of the Palestinian city of Hebron, in the occupied West Bank.Peace Now says the government-backed settlers took over a building on a main thoroughfare used by Palestinians to access the Old City, where hundreds of hardline settlers already live in a decades-old settlement guarded by Israeli troops adjacent to Palestinian homes.There was no immediate comment from the Israeli government.Hebron's Old City is home to a major holy site revered by Jews and Muslims, where the biblical patriarchs Abraham, Isaac and Jacob, and their wives, are believed to be buried. It has often been the scene of Israeli-Palestinian violence.Israel captured the West Bank, along with Gaza and east Jerusalem, in the 1967 Mideast war. The Palestinians want all three territories for a future state and — along with most of the international community — view settlements as illegal and an obstacle to peace."The goal of establishing a settlement in the heart of Hebron's casbah is to seize new areas of the city and displace Palestinians from them, similar to what was done in the city center around the existing settlements," Peace Now said."The settlement in Hebron is the ugliest face of Israeli control in the territories. Nowhere else in the West Bank is apartheid so blatant," it said.___Natalie Melzer contributed from Jerusalem. Kareem Chehayeb reported from Beirut and Frankel from Jerusalem. Associated Press writer Fatma Khaled in Cairo contributed.