ISRAELI forces surrounded the southern Gaza city of Khan Younis for further attacks today just hours after it suffered its biggest loss since its invasion.

Twenty-one Israeli soldiers were killed during a ground offensive, the Israeli military said, after a rocket-propelled grenade fired at a tank set off a secondary explosion that brought two buildings down on its soldiers.

Khan Younis, Gaza’s second-largest city, has seen heavy attacks by Israel in recent days as Israel claims that top Hamas leaders may be hiding in tunnels below the city.

The military said that it has killed dozens of Hamas militants in the city in recent days but, consistent with many other attacks, has failed to provide evidence for its claims.

At least 25,295 Palestinians have been killed in Gaza since October 7.  

In Khan Younis today, Palestinians dug graves inside the yard of al-Nassar Hospital as its medical staff struggled to deal with the high number of newly killed and wounded.

Red Crescent spokesperson Raed al-Nems said that there was heavy fighting around the city’s al-Amal Hospital, with a shell hitting the fourth floor and killing one person and wounding 10 others.

Healthcare workers said strikes hit at least four schools sheltering displaced people on the city’s west, including two inside a coastal strip that Israel had declared a safe zone for people fleeing.

Israeli troops also stormed al-Khair Hospital in the Muwasi “safe” zone and detained the medical staff, according to the Gaza health minister.

Thousands of people were trying to flee the city to the Rafah crossing, some on foot with only what they could carry, amid heavy gunfire by the surrounding soldiers.

Israeli Prime Minister Benjamin Netanyahu mourned the death of the 21 soldiers today, saying his army will “fight on until absolute victory.”

A senior Egyptian official said that Israel has proposed a two-month ceasefire in which Hamas would release Israeli hostages in exchange for the release of Palestinians imprisoned by Israel.

The official, who spoke on condition of anonymity, said that Hamas has rejected the proposal as it insists on a permanent ceasefire and for Israel to fully withdraw from the territory before any further release of hostages.

On Monday, dozens of family members of hostages held by Hamas stormed a committee meeting in Israel’s parliament to demand a deal.