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By William Maclean DUBAI (Reuters) - The Islamic State released a video on Tuesday purporting to show the beheading of American hostage Steven Sotloff, raising the stakes in its confrontation with Washington over U.S. A masked figure in the video seen by Reuters also issued a threat against a British hostage, a man the group named as David Haines, and warned governments to back off "this evil alliance of America against the Islamic State".More...