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TEL AVIV—At the start of the week, President Trump declared the “ historic dawn of a new Middle East” after securing a truce between Israel and Hamas that stopped the war in Gaza. Days later, the peace process is already stumbling.

The reason: a controversy over Hamas’s failure to return all of the bodies of dead hostages that remain in Gaza. Israel and the Arab mediators in the talks knew Hamas wasn’t able to locate all of them, but the militant group’s initial decision to return only four looked like foot-dragging to Israel and set off a highly political skirmish amid demands the deal be halted until the bodies were back.