Israeli troops pose with guns in Gaza's parliament building as their comrades prepare to storm Hamas tunnels to free the 239 hostages held there

Israel last night appeared to have captured Gaza's parliament building.

A picture showed troops posing with guns and Israeli flags inside a chamber at the Palestinian Legislative Council building in Gaza City.

The Israel Defence Forces told the Mail the picture's authenticity had not yet been established, but a spokesman added: 'We have no reason to think it is not [genuine].'

Israel's defence minister Yoav Gallant last night said Hamas has 'lost control', adding: 'There is no force of Hamas capable of stopping the IDF. The IDF is advancing to every point. 

'The Hamas organisation has lost control of Gaza. Terrorists are fleeing south. Civilians are looting Hamas bases. They have no confidence in the government.'

It came as the IDF was said to be finalising plans to storm tunnel networks in Gaza to free the 239 hostages held there as hopes faded of a deal with Hamas.

Attempts to negotiate the release of the hostages seized on October 7 were approaching a 'critical moment', according to Gershon Baskin, who facilitated the last hostage exchange with Hamas in 2011.

'Within the next few days or even hours, if there isn't a deal for the release of hostages by agreement, military operations to go into the places hostages might be held will begin,' he told The Times.

It was claimed yesterday that seven babies have now died in the neo-natal unit of Gaza's biggest hospital, which Israeli troops have surrounded. 

The Hamas deputy health minister Youssef Abu Rish said 27 adult patients at Al Shifa hospital had also died since the weekend due to fuel shortages.

Terrorists exchanged fire with IDF troops at the hospital, said to sit on top of Hamas' main command bunker and tunnels. 

Inside the neo-natal unit, pictures emerged of babies wrapped in green fabric taped around them for warmth.

'Yesterday I had 39 babies and today they have become 36,' said Dr Mohamed Tabasha, head of the paediatric department. 

'I cannot say how long they can last. I can lose another two babies today, or in an hour.'

The IDF released footage claiming to show Hamas fighters at a second hospital in Gaza City, al-Quds. 

The IDF said its troops were fired on from the hospital entrance, where the terrorists 'embedded' themselves among civilians. Israel said 'approximately 21 terrorists were killed'.