Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say

Egypt has threatened to suspend its peace treaty with Israel if the Israeli Gaza offensive expands into the densely populated border town of Rafah

RAFAH, Gaza Strip -- Egypt is threatening to suspend its peace treaty with Israel if Israeli troops are sent into the densely populated Gaza border town of Rafah, and says fighting there could force the closure of the territory's main aid supply route, two Egyptian officials and a Western diplomat said Sunday.

The threat to suspend the Camp David Accords, a cornerstone of regional stability for nearly a half-century, came after Prime Minister Benjamin Netanyahu said sending troops into Rafah was necessary to win the four-month-old war against the Palestinian militant group Hamas.

Over half of Gaza's population of 2.3 million have fled to Rafah to escape fighting in other areas, and are packed into sprawling tent camps and U.N.-run shelters near the border. Egypt fears a mass influx of hundreds of thousands of Palestinian refugees who may never be allowed to return.

The stand-off between Israel and Egypt, two close U.S. allies, comes as aid groups warn that an offensive in Rafah would worsen the already catastrophic humanitarian situation in Gaza, where around 80% of residents have fled their homes and where the U.N. says a quarter of the population faces starvation.

Netanyahu, in an interview with ABC News “This Week with George Stephanopoulos,” suggested civilians in Rafah could flee north, saying there are “plenty of areas" that have been cleared by the army. He said Israel is developing a “detailed plan” to relocate them.