TEL AVIV—The body of the last dead American hostage in Gaza was returned by Hamas after more than two years, marking the close of a painful chapter for U.S. families whose relatives were taken by the militant group.

Itay Chen, 19, an Israeli-American soldier who also holds German citizenship, was killed during the Oct. 7, 2023, Hamas-led attack while fighting off militants with his tank crew in southern Israel. Chen was one of around 250 hostages taken during the attack, including around a dozen U.S. nationals, according to the Hostages Families Forum, an advocacy group.

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