Street fighting in Gaza as Israeli troops push deep into the besieged territory

Live updates: Follow the latest news on Israel-Gaza

Israel and Hamas fought on the streets of Gaza on Tuesday, with the conflict turning into urban warfare after more than three weeks of air strikes hammering the besieged enclave.

Gaza's interior ministry said Israeli forces are in the north-west of the city, while the Israeli military said its ground forces are “deep in the Gaza Strip” and have struck 300 Hamas targets, including their compounds inside underground tunnels.

Palestinian spokesman Iyad Al Bazm said Israeli tanks are currently in the Al Karama area and on the major Salah Al Din Street and are attempting to reach Al Rashid Street, all in the north-west, in a bid to “separate Gaza's north and south”.

Israel has been threatening Hamas with a “ground invasion” since October 7 while expanding its daily bombardment by land and air. On Saturday, it said it was expanding its ground operations with infantry and armoured corps after entering northern Gaza overnight.

Tuesday's street fighting marks the biggest ground escalation since the beginning of the war and comes after a constant bombardment campaign that has claimed the lives of more than 8,500 Palestinians and a tightened siege that has deprived its two million residents of water, fuel, and aid, a move condemned by the United Nations.

Al-Qassam Brigades, Hamas' military wing, said it targeted an Israeli tank penetrating east of the Al-Zaytoun neighbourhood with an Al-Yassin 105 shell, setting it on fire, and an Israeli bulldozer and a military vehicle after they entered a building where their men were based in Beit Hanoun.

The Palestinian faction also claimed a strike against Israel's Nevatim air force base with a missile barrage.

Meanwhile, the Israeli army said its forces have been fighting “deep in the Gaza Strip”.

“In recent hours, combined forces, led by ground forces, have been conducting fierce battles deep in the territory of the Gaza Strip … forces attacked a Hamas terrorist outpost in the north of the Gaza Strip,” the Israeli military said on X, formerly known as Twitter.

The Israeli army claimed that it attacked Hamas militants inside the vast tunnel network underneath Gaza without clarifying if the soldiers entered any of the tunnels.

In a statement it said that over the past day its combined combat forces “struck approximately 300 targets, including anti-tank missile and rocket launch posts below shafts, as well as military compounds inside underground tunnels belonging to the Hamas terrorist organisation”.

Militants responded with anti-tank missiles and machinegun fire, it added.

“The soldiers killed terrorists and directed air forces to real-time strikes on targets and terror infrastructure.”

The vast labyrinth of tunnels built beneath densely populated Gaza and used for smuggling and incursions into Israel by Hamas fighters, is considered the biggest security threat to the Israeli army.

Yocheved Lifshitz, an 85-year-old woman taken hostage by Hamas and released, had described being made to walk for “kilometres” through a “spider’s web of tunnels”.

During a press briefing on Tuesday, Israeli army spokesman Daniel Hagari said its forces had eliminated the commander of the Beit Lahia battalion in Hamas’ Northern Brigade who was responsible for October 7 attacks targeting Kibbutz Erez and Moshav Netiv Ha’Asarah.

“Our offensive operations will continue and intensify according to plan,” he said.

He said an aerial threat that was targeted at Eilat, in southern Israel, on Tuesday morning had been detected.

Three Israeli women, identified by Prime Minister Benjamin Netanyahu as Yelena Trupanob, Danielle Aloni and Rimon Kirsht, who are held captive by Hamas in Gaza give a statement in a video. Reuters

“There is no threat posed to the area. I repeat, there is no threat in this area, and there is no danger. We have a strong defensive posture in the southern area in all dimensions,” said Admiral Hagari.

Despite mounting global calls for a humanitarian pause, Israeli Prime Minister Benjamin Netanyahu said he will not agree to a ceasefire. The UAE mission to the UN on Monday called for an immediate ceasefire in the conflict.

“We need a ceasefire in the Gaza war now,” Lana Nusseibeh, ambassador and permanent representative of the UAE to the UN, told a Security Council meeting.

In Lebanon, where clashes between Israeli forces and Hezbollah-supported armed groups have been intensifying over recent weeks, the Israeli military spokesperson said its fighter jets had carried out overnight strikes and “destroyed infrastructure belonging to the Hezbollah terrorist organisation”.

The Israeli military “maintains a very high level of readiness, remains on high alert and is deployed both along the border and throughout the northern communities”, Admiral Hagari said.

240 hostages under Hamas custody

Israel has revised the number of hostages being held in Gaza to 240 – up from the previous figure of 230.

Admiral Hagari said the increase was due to further captives being identified. All 240 families have been notified, he added.

“Identification is complex. Some of the hostages are not Israeli citizens, and the process is complex,” he said.

He also said that the families of 315 Israeli soldiers killed in fighting since the Israel-Gaza war began have been notified of their deaths.

Ori Megidish, an Israeli soldier taken hostage by Hamas militants, was rescued during a ground raid in the Gaza Strip on Monday, according to a joint statement from the military and the Shin Bet intelligence service.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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The UN General Assembly President in quotes:

YEMEN: “The developments we have seen are promising. We really hope that the parties are going to respect the agreed ceasefire. I think that the sense of really having the political will to have a peace process is vital. There is a little bit of hope and the role that the UN has played is very important.”

PALESTINE: “There is no easy fix. We need to find the political will and comply with the resolutions that we have agreed upon.”

OMAN: “It is a very important country in our system. They have a very important role to play in terms of the balance and peace process of that particular part of the world, in that their position is neutral. That is why it is very important to have a dialogue with the Omani authorities.”

REFORM OF THE SECURITY COUNCIL: “This is complicated and it requires time. It is dependent on the effort that members want to put into the process. It is a process that has been going on for 25 years. That process is slow but the issue is huge. I really hope we will see some progress during my tenure.”

British Grand Prix free practice times in the third and final session at Silverstone on Saturday (top five):

1. Lewis Hamilton (GBR/Mercedes) 1:28.063 (18 laps)

2. Sebastian Vettel (GER/Ferrari) 1:28.095 (14)

3. Valtteri Bottas (FIN/Mercedes) 1:28.137 (20)

4. Kimi Raikkonen (FIN/Ferrari) 1:28.732 (15)

5. Nico Hulkenberg (GER/Renault) 1:29.480 (14)