Israeli forces moved house-to-house in southern Gaza’s main city on Wednesday as the intense street battles forced more civilians to flee toward the Egyptian border. After two months of war, the military said it suspects the leadership of the Islamist militant group Hamas is still alive and is hunkered down in southern areas of the small coastal territory – with some of them believed to be holding hostages, too. Israeli officials said troops were fighting in the centre of Khan Younis, the second biggest urban area in the Gaza Strip, after Gaza City. If the Israel Defense Forces (IDF) do take f…