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Most Israeli troops have pulled out of northern Gaza after days of fighting that has left more than 100 people dead and drawn protest worldwide.
The Palestinian militant group Hamas claimed victory over Israeli forces and mounted a rally in Gaza City.
Five militants were killed in Israeli air strikes overnight, while several other Palestinians were found dead as Israeli forces withdrew.
Israel said the operation was launched to defend itself against rocket attack.
Medical sources say at least 112 Palestinians have been killed since Wednesday, when Israel intensified its campaign in Gaza.
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