Israel PM Netanyahu says he opposes a Palestinian state

Israel bombarded southern Gaza on Friday after it publicly sparred with its main ally the United States over the possibility of a Palestinian state, the creation of which Washington sees as the only pathway to a lasting peace.

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GAZA STRIP: Witnesses reported gunfire and air strikes early on Friday in Khan Younis, the main city in the south of the Gaza Strip, where Israel says many members and leaders of the Palestinian Islamist movement Hamas are hiding.

The Palestinian Red Crescent reported "intense" artillery fire near the Al-Amal hospital, while Gaza's Hamas-run health ministry said 77 people were killed and dozens injured overnight.

The Israeli military said its Givati Brigade was fighting as far south as its troops had reached so far in the campaign.

"The soldiers eliminated dozens of terrorists in close-quarters combat and with the assistance of tank fire and air support," it said.

The United Nations says the war, which began with the unprecedented Hamas attacks on Israel on October 7, has displaced roughly 85% of Gaza's 2.4 million people.

The World Health Organization (WHO) said overnight it had counted 24 cases of hepatitis A and "thousands" of cases of jaundice likely linked to the spread of the viral liver infection.

Hamas's October 7 attacks resulted in the deaths of about 1,140 people in Israel, most of them civilians, according to an AFP tally based on official figures.