Overnight, the militant group returned several Israeli bodies, followed by two additional coffins later on Wednesday, according to local time.

The al-Qassam Brigades, the military wing of Hamas, stated that this action aligns with the ongoing “hostage-prisoner exchange” that was negotiated under the current truce.

“We are making significant efforts to resolve this issue,” the group declared in a statement.

In Israel, the first funerals for those returned have commenced, drawing thousands of mourners to pay their respects to the deceased.

Among those returned was Daniel Peretz, an Israeli soldier captured during the October 7 attack two years ago. He was laid to rest on Wednesday.

The first funerals for the returned hostages have started in Israel, with thousands gathering to mourn the dead.

Daniel Peretz, an Israeli soldier who was captured during the October 7 attack two years ago, was among the deceased hostages returned to Israel this week. He was laid to rest on Wednesday. Source: Getty / Alexi J Rosenfeld

Israelis gathered to pay their last respects to the deceased Israeli hostage, Guy Illouz, a 26-year-old sound technician abducted by Hamas at the Nova music festival.

Illouz was the first of the four hostages handed over by Hamas on Monday to be buried.

Dispute over return of hostage bodies

Hamas returned four bodies confirmed as dead hostages on Monday and another four bodies late on Tuesday, though Israeli authorities said one of those bodies was not that of a hostage.

A Nepali student pays respect to Bipin Joshi, a Nepali student killed in Palestinian militant group Hamas custody, during a candlelight vigil held in Kathmandu, Nepal. Source: Getty / Subaas Shrestha

The Israeli military said it received two more coffins from the Red Cross at a meeting point in the northern Gaza Strip late on Wednesday, and the bodies were being taken for forensic identification.

However, the remains of nearly 20 other hostages are still believed to be in Gaza.

Israel will ‘crush’ Hamas if truce not honoured, defence minister says

Far-right national security minister Itamar Ben-Gvir has threatened to cut off humanitarian supplies to Gaza if Hamas fails to return the remains of Israeli soldiers.

Meanwhile, the Rafah crossing between Gaza and Egypt remained closed on Wednesday, despite reports it could reopen to allow aid convoys through, with Israel insisting Hamas hand over the last of the deceased hostages.

UN says not enough aid is entering Gaza

The United Nations is seeking a boost in humanitarian aid for Gaza, saying the hundreds of relief trucks cleared to enter the devastated enclave under a ceasefire were nowhere near the thousands needed to ease a humanitarian disaster.

The Israeli army handed over the bodies of 45 Palestinians to Gaza authorities via the Red Cross. Source: Getty / Doaa Albaz

Israeli officials said 600 trucks have been approved to enter the blockaded territory under the truce deal.