ISRAELI student Sahar Baruch has been killed in an alleged "failed rescue mission" two months after he was kidnapped by Hamas.
Hamas claimed that Baruch, 25, died during an attempted hostage rescue operation on Friday night.
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Hostage Sahar Baruch has been killed, his kibbutz confirmed
But Baruch's kibbutz said he was murdered by the terror group, which took hundreds of Israelis and foreigners hostage on October 7.
Engineering student Baruch was captured after running back into his grandmother's burning house on the kibbutz to find his brother Idan's inhaler.
Idan and the brothers' grandmother had fled the house because the smoke was triggering his asthma.
They were both brutally killed by Hamas, while Sahar was taken hostage.
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Kibbutz Be’eri said: "It is with deep sorrow and a broken heart that we announce the murder of Sahar Baruch.
"We will demand the return of Sahar’s body as part of any hostage exchange agreement."
Hamas's military wing claimed that Baruch was killed in a firefight as it fended off the IDF raid.
In an English-language statement, it said: "A fierce gunfight broke out between the Al-Qassam fighters and the Israeli special forces.
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"This left many soldiers wounded while the captive Israeli was announced killed."
The terror group posted a clip showing Baruch speaking on camera in captivity.
The video then cuts to footage of the hostage lying on the floor with blood on his face.
It also shows what appear to be IDF body armour seized by the Hamas during the clashes.
The IDF said that two special forces soldiers were wounded during the failed raid.
A spokesman said: "During the operation, numerous terrorists who took part in the abducting and holding of hostages were killed.
"No hostages were rescued in this activity. We hold Hamas fully responsible for the safety and wellbeing of these hostages.
"We are not going to comment on psychological warfare that Hamas continues to wage against the people of Israel."
Fierce fighting between Israel and Hamas erupted after the terror group brutally murdered 1,200 men, women, and children on October 7.
Israeli airstrikes have killed more than 17,000 Palestinians, according to Gaza's Hamas-run health ministry.
A number of hostages were released during a short-lived truce between Israel and Hamas, but some are still in Gaza.
The remaining hostages' families gathered in Tel Aviv on the third night of Hannukah to demand their release.
The rally included speeches by hostages released during the prisoner swap last month.
The UK chose to abstain on a United Nations Security Council (UNSC) resolution demanding an immediate humanitarian ceasefire in Gaza - a motion that was vetoed by the US.
Speaking at the UNSC meeting on Friday, UK ambassador to the UN Dame Barbara Woodward Britain backs "further and longer pauses" to get aid to Palestinians and to allow the release of Israeli hostages.
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But she argued to the council that "we cannot vote in favour of a resolution which does not condemn the atrocities Hamas committed against innocent Israeli civilians" on October 7.
Senior UN aid official Carl Skau has warned that half of Gaza's population is starving as violence continues.
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Families of the remaining hostages have gathered in Tel Aviv to demand their release Credit: Getty