ISRAELI Prime Minister Benjamin Netanyahu has vowed his forces are "one step from victory" over Hamas.
He was speaking as the IDF announced they were pulling troops out of South Gaza in what sources described as an "operational" move.
Netanyahu however vowed there would be no ceasefire as he addressed his cabinet.
"We are one step away from victory. But the price we paid is painful and heartbreaking," he said.
"There will be no ceasefire without the return of hostages. It just won't happen."
Meanwhile, the Israeli Defence Force (IDF) announced they were pulling troops out of South Gaza.
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Israeli troops have been fighting a bloody battle in Khan Younis - which they say is one of Hamas' strongholds - for months.
The withdrawal however is said to be tactical and operation grounds, an Israeli official told Haaretz.
The source said: "[We] dismantled Hamas's Khan Yunis brigades and killed thousands of its members.
"We did everything we could there."
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It is understood one battalion of troops will remain in the area - and the IDF will continue to operate in other parts of the Gaza Strip.
Hamas terror chiefs meanwhile claimed the withdrawal was a feint - and claimed Israel would be seeking to attack the key city of Rafah.
He was speaking as the world marks six months since the massacre on October 7.
More than 1,200 Israeli men, women and children were butchered when Hamas terrorists streamed over the border.
They took hundreds of people hostage - taking them back to Gaza Strip.
Israel has since been waging a brutal war as they attempt to wipe out the terror group from the tightly packed 25-mile-long area.
They continue to hunt the head of Hamas, "Gaza's Bin Laden" Yahya Sinwar.
But questions have been raised over their tactics as it is feared thousands of civilians have been killed.
And the deaths of seven people in an aid convoy struck by an Israeli missile - including three Brits - has piled on even more pressure.
Last night, tens of thousands of Israelis protested as they demanded Netanyahu reach a deal to release the hostages.
However, the PM said today he would not give in to Hamas' "extreme" demands.
Despite his rhetoric, it is understood talks are ongoing - with an Israeli delegation due to head to Cairo.
They will meet with American and Hamas negotiators to attempt to thrash out a deal.
Palestinian civilians have been left fleeing for their lives as Israel attempts to destroy Hamas.
The October 7 massacre was one of the worst terrorist attacks in history.
It shocked the world with the disturbing levels of brutality used against men, women, children and even babies.
And dozens of people snatched on that day remain as hostages - or missing - after being kidnapped and taken into Gaza.
Families living in the 25-mile long strip have been caught in the brutal crossfire, with regular accusations that the terrorists are attempting to use them as “human shields”.
Much of Gaza have been turned into a devastated warzone - with ruined buildings, dwindling supplies and horrific suffering for Gaza’s people.
The Red Cross estimate some 1.5million people are currently hunkering down in Rafah in the far south of the Gaza Strip near the border with Egypt.
Israel believes Hamas leaders may be hiding in Rafah - but are facing growing international pressure not to launch a military operation with so many displaced people trapped there.
The UK has said it is "deeply concerned" about the loss of life in Gaza, and US President Joe Biden has warned it would be a "mistake" to attack Rafah.
Figures for the death toll remain unverified - but Hamas' health officials have claimed 30,000 Palestinians have been killed in Gaza since October 7.
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Israel disputes these figures - but has admitted accidentally killing civilians in Gaza.
But the military and Netanyahu's government have often said the deaths must be blamed on Hamas - not Israel.
EXCLUSIVE: I was first to face Hamas in bloody 24hr battle after massacre
By Ellie Doughty
BRIT Israeli soldier Sam Sank fought Hamas in a 24-hour battle inside a ravaged town full of dead bodies after the October 7 massacre.
Sam spoke to The Sun about the hellish war that "broke him" in the six months since Hamas slaughtered over 1,000 Israelis and kidnapped hundreds more.
Spurs fan Sam, raised in north London, woke up to the fairly common sound of sirens in Tel Aviv on the morning of October 7 and thought nothing of it.
It wasn't until later that he and his girlfriend uncovered the true horrors of Hamas' early ambush as they hunkered down in the building's bomb shelter.
The 33-year-old was kitted out on an Israeli army base, gun in hand, by 4pm that afternoon.
Over the following months Sam documented a living "hell" of war in Gaza, beginning with the particularly grim mission of taking back Kfar Aza.
READ MORE OF SAM'S STORY HERE