Hamas confirmed Friday that its leader, Yahya Sinwar, was killed by Israeli forces in Gaza, and the militant group reiterated its stance that hostages taken from Israel a year ago will not be released until there is a ceasefire in Gaza and a withdrawal of Israeli troops.

"Those prisoners will not return to you before the end of the aggression on Gaza and the withdrawal from Gaza," said Khalil al-Hayya, who was Sinwar's Qatar-based deputy and headed up the group's delegation during several rounds of ceasefire negotiations mediated by the U.S., Qatar and Egypt.

In a statement, Hamas heralded Sinwar as a hero who "ascended as a heroic martyr, advancing and not retreating, brandishing his weapon, engaging and confronting the occupation army at the forefront of the ranks."

The statement appeared to refer to a video the Israeli military circulated of Sinwar's apparent last moments, in which a man sits on a chair in a severely damaged building, badly wounded and covered in dust. In the video, the man raises his hand and flings a stick at an approaching Israeli drone.

Sinwar's killing, in what appeared to be a chance front-line encounter with Israeli troops on Wednesday, could shift the dynamics of the Gaza war even as Israel presses its offensive against Hezbollah with ground troops in southern Lebanon and airstrikes in other areas of the country. Hezbollah has fired rockets into Israel nearly every day since the Israel-Hamas war began.

U.S. Defence Secretary Lloyd Austin called on Israel, Hamas and Hezbollah to seize "opportunities for a change in direction" following the killing of Sinwar, while in Brussels on Friday. From Washington, White House spokesperson John Kirby offered a similar sentiment, though he stressed that there were currently no cease-fire serious negotation efforts occurring.

Both Hamas and Hezbollah are backed by Iran, whose mission to the United Nations issued a statement honouring Sinwar, emphasizing he died on the battlefield and not in hiding.

'An inflection point'

Israel has pledged to destroy Hamas politically in Gaza, and that killing Sinwar was a top military priority.

Photos apparently taken by Israeli troops on the scene showed the body of a man who appeared to be him, half-buried in rubble and with a gaping wound in his head.

Israeli Prime Minister Benjamin Netanyahu said in a speech announcing the killing Thursday night that "our war is not yet ended."

But many, from the governments of Israel's allies to exhausted residents of Gaza, expressed hope Sinwar's death would pave the way for an end to the war.

In Israel, families of hostages still held in Gaza demanded the Israeli government use Sinwar's killing as a way to restart negotiations to bring home their loved ones. There are about 100 hostages remaining in Gaza, at least 30 of whom Israel believes are dead.

"We are at an inflection point where the goals set for the war with Gaza have been achieved — all but the release of the hostages," said Ronen Neutra, father of Israeli American hostage Omer Neutra, in a video statement. "Sinwar, who was described as a major obstacle to a deal, is no longer alive."