Witnesses say hundreds of Eritrean vehicles left Shire, a development top US diplomat Blinken commends in phone call with Ethiopian PM Abiy Ahmed.
Ethiopian army says Amhara special forces pulled out from Shire following Tigray rebels' surrender of heavy weapons to government soldiers.
Weapon handover takes place in Agulae town, around 30 km northeast of regional capital Mekelle — part of wider November 2 ceasefire deal.
Rebels in Tigray have welcomed the African Union statement calling for an immediate ceasefire and said they would respect an internationally backed truce.
War between federal forces and the rebels resumed August 24 after a five-month lull that followed a humanitarian truce declaration by Prime Minister Abiy Ahmed.
The Oromo Liberation Army, designated a terrorist organisation by Addis Ababa, said the Amhara Fano militia staged the attack and killed at least 62 people in Agamsa.
Mike Hammer, the US special envoy for the Horn of Africa, will head this weekend to Ethiopia and "convey that all parties should halt military operations and engage in peace talks," says White House.
A two-day conference in Ethiopia was aimed at exploring how China could play a more important role in the region, Beijing's special envoy says.
Beijing rejects accusations that its lending system has pushed African countries into debt traps, saying the "narrative" is pushed by rivals with "ulterior motives."
How the Ethiopian leader and the peace award winner suddenly found himself fighting the Tigrayan rebels as a frontline soldier.
A Treasury Department statement cited the “continued role” the Eritreans play in the war, accusing forces of "looting, sexual assault, killing civilians, and blocking humanitarian aid".
At least three migrants have died this week as they traversed perilous waters and dangerous railways to Britain from France.
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