Israeli forces have recovered the bodies of two Israeli-Americans taken back to Gaza as hostages during the Hamas-led attack on southern Israel on 7 October 2023, the Israeli military says.

Judi Weinstein Haggai, 70, who was also a Canadian citizen, and her husband Gadi Haggai, 72, were murdered by gunmen from the Mujahideen Brigades group when they attacked Kibbutz Nir Oz, a statement said.

Their bodies were found in the southern Khan Younis area of Gaza overnight and brought back to Israel for forensic identification.

There are now 56 hostages still being held by Hamas in Gaza, at least 20 of whom are believed to be alive.

Israeli Prime Minister Benjamin Netanyahu said he and his wife sent their condolences to the families of Judi and Gadi Haggai.

“Our hearts grieve over this terrible loss. May their memories be blessed,” he added.

“I would like to thank, and express appreciation to, the fighters and commanders for this determined and successful operation. We will not rest, nor will we be silent, until we return home all of our hostages – the living and the deceased.”

The couple’s families recalled how they “went out for a walk on the morning of that cursed Saturday and never returned”.

“We welcome the closure and their return to a proper burial at home, in Israel,” they said.

Judi, an English teacher, and Gadi Haggai, who used to work in Kibbutz Nir Oz’s kitchen, were last seen alive in a video they shared with a group chat at the start of the 7 October attack. They were seen taking cover in a field as incoming rockets fired from Gaza streaked overhead and the sound of gunfire was heard.

Judi later told friends and relatives they had been wounded, before ceasing contact.

The couple’s daughter Iris Weinstein Haggai said after the attack her mother had told her they had been “shot by terrorists on a motorcycle and that my dad was wounded really bad”. She added: “Paramedics tried to send her an ambulance. The ambulance got hit by a rocket.”

In December 2023, the kibbutz announced that both Judi and Gadi were killed that day and their bodies were being held hostage in Gaza.

On Wednesday, an Israeli military official said the couple’s bodies were recovered from the Khan Younis area following an operation based on “precise intelligence” from the Israel Defense Forces (IDF) and the Shin Bet security service.

They said they could not disclose further details due to the sensitivity of the operation. However, Israeli Army Radio reported the intelligence was obtained through the Shin Bet’s interrogation of a Palestinian fighter captured by Israeli troops in Gaza.

“We will keep doing the utmost for the mission of bringing our hostages back – the living, to reunite with their families, and the deceased to dignified burial. We will deploy all the methods and tools in our disposal for this goal,” the military official said.

The Hostages and Missing Families Forum urged decision-makers to do everything they could to agree a new ceasefire deal with Hamas to secure the return of all the remaining hostages.

“There is no need to wait another 608 agonising days for this,” it said. “The mission can be completed as early as tomorrow morning. This is what the majority of the Israeli people want.”

Israel launched a military campaign in Gaza in response to the unprecedented cross-border attack almost 20 months ago, in which about 1,200 people were killed and 251 others were taken hostage.

Another four people, two of them dead, were already being held captive in Gaza before the conflict.

So far, 199 hostages have been returned, 148 of them alive, mostly through two temporary ceasefire deals with Hamas.

At least 54,677 people have been killed in Gaza during the war, according to the territory’s Hamas-run health ministry.

Israel imposed a total blockade on Gaza on 2 March and resumed its military offensive against Hamas two weeks later, collapsing a two-month truce during which 33 Israeli hostages and five Thai hostages were freed. Israel said it wanted to put pressure on Hamas to release the remaining hostages.

On 19 May, the Israeli military launched an expanded offensive that Netanyahu said would see troops “take control of all areas” of Gaza. Israel also partially eased its blockade, allowing some food into the territory amid warnings from experts of a looming famine.

More than 4,400 people have reportedly been killed in Gaza over the past three months, while 640,000 others have been displaced again by Israeli ground operations and evacuation orders.

Hopes of a new ceasefire deal faded last week, with Hamas and Israel remaining at odds over the conditions of the latest US proposal.

Hamas said it was prepared to release 10 living hostages and the bodies of 18 dead ones, which was the number specified in US envoy Steve Witkoff’s proposal, in exchange for a 60-day truce and the release of Palestinian prisoners.

But the group also repeated its demands for guarantees that the truce would lead to a permanent ceasefire, as well as a complete Israeli withdrawal from Gaza, and the resumption of unrestricted aid deliveries.

Israel called Hamas’s statement a refusal of the proposal, and Witkoff said it was totally unacceptable. But a Hamas official insisted it had acted positively and responsibly.