A joint call by many western powers calling on Iran to not retaliate was promptly dismissed by Iran. However, Iran is still maintaining their previous position that they would be willing to forego a retaliation against Israel in exchange for an enduring ceasefire with the militias in Gaza. Mahmoud Abbas, who heads the Palestinian Authority, is currently in Turkey which has positioned itself as an interlocutor despite some extremely public and personal feuding with Israel and individuals in the Israeli government. Abbas is expected to remain in Turkey through tomorrow, talking with various Turkish politicians. This is running parallel to a meeting involving the United States, Egypt, Qatar, and Israel to also be held tomorrow. Both diplomatic events are strikingly missing one of the two key parties involved in the war, but as Turkey deals with Egypt and Qatar (and is pretty close to the latter), indirect diplomacy has a chance to take place here without Palestinian or Israeli leaders needing to worry about domestic pressures. That said, the Palestinian Authority is not Hamas, and does not rule Gaza, but there are also tensions in the West Bank which could be addressed with one less layer of communications.
Overall, the region remains largely in a holding pattern as diplomacy has failed to yield any breakthroughs but is still ongoing. Tomorrow, and potentially Friday if backdoor negotiations continue, may prove to be decisive and determine whether or not Iran attacks Israel. The same likely also applies to Hezbollah. While they have outright stated that they may launch their large retaliation whether or not Iran does, they are clearly waiting for Iran to determine a course of action. If Iran attacks, Hezbollah will almost assuredly coordinate. But if Iran sits it out for whatever reason, Hezbollah will be left relatively alone against Israel, which would certainly dampen their enthusiasm.