Some troops had been expected to withdraw to allow hundreds of thousands of displaced Gazans to go home. But Israel said the hostage exchange before that step had not gone as agreed. Hamas accused Israel of stalling.

The deal, mediated by the United States, offered a glimmer of hope in a conflict that has taken an immense human toll.

Militant group Hamas has hailed the return of thousands of displaced people to northern Gaza a "victory", as Palestinians gathered with their belongings to return to the strip for the first time since the war began.