JERUSALEM (AP) — Israel's military announced Sunday it had withdrawn its forces from the southern Gaza city of Khan Younis, wrapping up a key phase in its ground offensive against the Hamas militant group and bringing its troop presence in the territory to one of the lowest levels since the six-month war began.

But defense officials said troops were merely regrouping as the army prepares to move into Hamas’ last stronghold, . “The war in Gaza continues, and we are far from stopping,†said the military chief, Lt. Gen. Herzi Halevi.

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