Israeli forces retreated from some Gaza City districts overnight after a fierce, week-long military offensive, leaving dozens of dead and wrecked homes and roads in the Palestinian enclave’s biggest urban area, residents and rescue service said on Friday.

The offensive, 10 months into Israel’s campaign to eliminate Hamas militants, took place as US-backed mediators sought to finalise a peace deal that would free remaining hostages taken by the militants in their cross-border rampage on October 7.

The Gaza Civil Emergency Service said teams had collected around 60 bodies of Palestinians killed by Israeli forces over the past week from the area of Tel Al-Hawa and the edges of the Sabra neighbourhood in Gaza City.

Both residents and rescue teams cautioned that while tanks withdrew from some areas, Israeli snipers and tanks continued to control high ground at some locations, and warned residents against trying to return to their homes in those areas.

“There are bodies scattered in the streets, dismembered bodies, there are bodies of entire families, there are also bodies inside a home of an entire family that was completely burned,” Gaza Strip civil defence spokesperson Mahmoud Basal said in comments carried by media in Hamas-run Gaza.

The Israeli military had said on Thursday that its forces were working to dismantle Hamas capabilities in Gaza City, and that it “follows international law and takes feasible precautions to mitigate civilian harm”. It said the same was not true of Hamas.

The armed wings of Hamas and the Islamic Jihad said they had fought fierce battles against Israeli forces, attacking them with anti-tank rockets and mortar fire, killing and wounding many.

Home to more than a quarter of Gaza’s residents before the war, Gaza City was largely razed to the ground in late 2023, but hundreds of thousands of Palestinians have returned to homes in the ruins. Israel has once again ordered them out, though it is unclear where residents can go safely. Israel controls most of Gaza’s borders and is also attacking central and southern Gaza.

Arab mediators, backed by the US, are trying to reach a ceasefire deal that would free Israelis held hostage by Hamas in return for many Palestinians jailed by Israel.

On Friday, a senior Hamas official blamed Israel for a failure to build on momentum created when the Islamist faction dropped a key demand in the US-drafted ceasefire offer.