Israel steps up attacks on Hamas as Palestinian ceasefire teeters

Israel's security cabinet ordered the military to step up operations against Hamas and Islamic Jihad in the Gaza Strip as Palestinian gunmen continued firing Qassam rockets and mortars into southern Israel.

Miri Eisin, the Prime Minister's spokeswoman, said ministers and security chiefs had decided last night to "upgrade" their counter-offensive. "If that does not reduce the fire," she warned, "then the security cabinet will reconvene to decide on additional, more drastic steps."

So far, Israel has restricted itself to air strikes on rocket crews, command centres and weapons workshops, but Ms Eisin said it was no longer excluding ground operations. "We're talking about a variety of operational steps aimed at everything that has to do with rockets and terrorist activity. We're not excluding any type of activity." Ze'ev Boim, a right-wing minister, urged the army to resume the assassinations of Hamas political as well as military leaders, including Ismail Haniyeh, the Prime Minister. "We must strike their leaders with all our might," he insisted.

Rockets fell again yesterday on towns and villages in the western Negev, but on a smaller scale. The army reported that seven landed on Israeli soil, including three on Sderot, down from 21 on Saturday and 130 over the previous five days. Hundreds of families have left the town for hotels and guest houses out of rocket range.

Three Palestinian mortar shells also hit the Karni freight terminal, Gaza's economic lifeline, yesterday. The crossing has been closed to commercial traffic for the past week, but is still open for humanitarian supplies. Amid demands from hardline cabinet ministers for Israel to "dismantle Hamas," warplanes struck five targets in the Gaza Strip early yesterday. Palestinians sources reported four dead, including a 15-year-old boy.

On the Palestinian home front, the latest truce agreed on Saturday night between warring Hamas and Fatah gunmen appeared to be holding almost 24 hours later. Shops and markets opened, families ventured on to the streets to stock up on food, and cars took to the roads.

Fawzi Barhoum, a Hamas spokesman, said: "No one would accept to fight one another while the Israelis are bombarding Gaza." Snipers came down from the rooftops and dozens of hostages, seized by both sides during a week of vicious infighting which killed 50, were released.

Nonetheless, unidentified gunmen stormed the communications ministry's Gaza City headquarters yesterday morning. Suleiman Zuhairi, a senior official, said the raiders opened fire inside the building and stole documents, computers and a car. Hamas, which controls the ministry, blamed Fatah for the attack. On the West Bank, Palestinian spokesmen accused Israeli soldiers of beating Mustafa Barghouthi, the Information Minister. He was addressing a demonstration south of Bethlehem against the uprooting of Palestinian-owned fruit trees to clear a route for Israel's controversial separation barrier.