JERUSALEM — Israel declared Wednesday that it will not open the Gaza Strip’s blockaded borders until Hamas militants free a captured Israeli soldier, dealing a blow to Egyptian efforts to broker a long-term cease-fire.
The decision was condemned by Hamas, which is desperate for border crossings to be opened in order to start repairing destruction from Israel’s military offensive in the coastal territory last month.
In a parallel act, the prime minister of the rival Palestinian government in the West Bank announced plans to stream reconstruction money directly to the people of Gaza. That would effectively sideline the Hamas administration in Gaza.
Gaza’s borders have been sealed by Israel and Egypt since the Islamic militants of Hamas violently seized control of the territory nearly two years ago, driving out supporters of Palestinian President Mahmoud Abbas.
Israel allows only vital humanitarian supplies to enter, and the Security Cabinet decided that closure will stay in place until Sgt. Gilad Schalit is released. The 11-member body unanimously endorsed the condition, which was set out by Prime Minister Ehud Olmert this week.
The soldier was captured in a 2006 cross-border raid by Hamas-linked militants who attacked an army base, killing two other soldiers.
In return for sending Schalit back, Hamas is demanding freedom for hundreds of Palestinian prisoners held by Israel, including dozens of convicted killers. It also has insisted the prisoner exchange be handled separately from the cease-fire negotiations.
Olmert insisted on a link.
“I don’t think we need to open the crossings until the issue of Gilad Schalit is resolved,” he told the Security Cabinet, according to his office.
Israeli negotiator Ofer Dekel will fly to Cairo on Friday for further indirect talks with Hamas, mediated by Egypt, officials in Olmert’s office said. Dekel will remain in Cairo until an accord is reached.



