"I'm not sure the battle is over," he told the cable network's "Hannity" program, a month after the start of the Israel offensive that has claimed nearly 2,000 mostly Palestinian lives.
"I think we've degraded their (Hamas) capabilities significantly," he said, adding there may still remain tunnels dug by Hamas under the Gaza-Israel border that have yet to be found.
"It really depends on whether they want to continue this battle. I think we have to find a peaceful solution, if we can," he added.
He added: "We have nothing against the people of Gaza. In fact, we want to help the people of Gaza who are suffering under this terror tyranny."
On the high number of Palestinian civilian casualties that has provoked international condemnation, Netanyahu described such deaths as inevitable in the heat of battle.
"Those casualties are cruel, but they're unintentional," he said.
"Israel acts that way. It attacks combatants and accidentally kills non-combatants -- but in the case of the terrorists, it's the exact opposite."
Netanyahu also warned Americans that "the greatest danger we face" is terrorist groups or nations, backed by Iran, equipped with nuclear-tipped rockets and missiles.
"Look at the danger we face when they have rockets and missiles," he said.
"Now, imagine what kind of danger we'd have if they could put a nuclear warhead on top of these missiles. That's the danger that is coming from Iran."
A spokesman for Hamas's armed wing, the Ezzedine al-Qassam Brigades, warned Thursday of renewed fighting with Israel if talks in Cairo to extend a 72-truce in Gaza collapsed.
"We appeal to the Palestinian delegation to not accept a ceasefire, unless it satisfies the demands of our people," a spokesman using the nom-de-guerre Abu Obeida said in a televised address, adding that Hamas fighters were "ready to return to battle."
The three-day truce ending four weeks of bloodshed between Israel and Hamas, in which 1,886 Palestinians and 67 people on the Israeli side were killed, is due to end at 0500 GMT Friday.
The sides have so far failed to negotiate an agreement to extend the truce, with the Palestinians accusing Israel of "procrastinating".
Abu Obeida said the main demand of Hamas was the opening of a sea port for the blockaded enclave.
"We will not agree to stop the battle without a real end to the (Israeli) aggression and a real lifting of the siege," he said.
"If there is an agreement, it will be possible to extend the truce, but if there is not, we will ask the delegation to withdraw from the talks."
Speaking from Cairo, senior Hamas political official and delegation member Ezzat al-Rishq, said: "The resistance in Gaza and the delegation in Cairo are in one trench."
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