Why is Hamas still holding Arbel Yehud?

Israel shut down a key Gaza corridor Sunday after Hamas released four female soldiers but failed to free civilian hostage Arbel Yehud, intensifying a standoff that's left thousands of displaced Palestinians stranded.

Islamic Jihad, not Hamas, reportedly holds Yehud - potentially the last living female civilian in captivity. The militant group told CNN they'll only release her "under agreed prisoner exchange terms," hinting at friction between Gaza's armed factions.

"Half a million people are waiting because of one Arbel," locals told reporters as crowds gathered at the closed Netzarim crossing.

Former Israeli negotiator Gershon Baskin warned the blockade could backfire. "Hamas won't give anything for free," he told CNN, suggesting the pressure tactic might derail the fragile two-week-old hostage deal.

Prime Minister Netanyahu's office remains firm: the crossing stays closed until Yehud's fate is resolved. Israel demands either her immediate release or proof of life, though Hamas claims it's already provided evidence she's alive.

The crisis marks the first major test of the hostage agreement, with both sides accusing each other of violations. Hamas claims Israel broke the deal first, while Israeli officials insist the militant group failed to honor the civilians-first release sequence.

Meanwhile, thousands remain stuck at Netzarim - Hamas' pawns in a deadly game.

Kikar HaShabbat contributed to this article.