Israel launches fresh Gaza raid

The dead were reported to be a senior militant and a baby girl.

Israel stepped up military raids last week to counter rocket fire from Gaza. More than 100 Gazans were killed and Palestinian leaders suspended talks.

Palestinian Authority President Mahmoud Abbas said negotiations could only resume after calm was restored.

US Secretary of State Condoleezza Rice is winding up a trip to the region on Wednesday in which getting the Palestinians back to the table without conditions had been a key demand.

Certainly the Palestinian-Israeli negotiations must be resumed, but after reaching calm Mahmoud Abbas Gazans discuss Israeli raids

Israel has suggested a truce over Gaza would give Hamas, which opposes peace talks with Israel, a chance to regroup and rearm.

"Certainly the Palestinian-Israeli negotiations must be resumed, but after reaching calm," Mr Abbas told reporters.

Intensive efforts were being expended to achieve a truce, involving US and Egyptian diplomats, he added.

On Tuesday, he urged Israel to end what he called its "aggression" in Gaza, which is under control of the militant Hamas movement, rival to his Fatah party.