I’m reading it that way, too. It’s unfortunate wording, but if you read past the first statement, he’s clearly discussing the attacks on Palestine by Israel. Immediately after that opening, Zohran writes “Relentless Israeli bombardment of Palestinians”; using “Israeli” to mean {enacted by Israel}. I’m going to go with the best and say that Zohran writing “Israeli hostages” means {hostages Israel held} and not {hostages from Israel}.
It sounds like Zohran agrees with you, in calling the Palestinian civilians seized by Israeli aggressors “Israeli hostages”.