Israeli forces killed eight Palestinians, at least five of them armed, and an Israeli soldier was shot dead today as an army offensive against Islamic militant strongholds in the Gaza Strip pushed on.
On the political front, Israel's centre-left Labour Party said it was pulling out of talks to join Mr Ariel Sharon's governing coalition after the prime minister signed a coalition deal with the pro-settlement National Religious Party (NRP).
The decision dashed Mr Sharon's hopes of forming a unity government to try to provide much-needed economic stability to Israel, which has been rocked by a 29-month-old Palestinian uprising for statehood.
Israeli armoured columns backed by helicopter gunships rumbled into the northern Gaza Strip town of Beit Hanoun shortly after midnight, battling gunmen, destroying the homes of six Islamic militants and tearing up roads.
Palestinian sources said six Palestinians were killed in Beit Hanoun, including four gunmen and members of the Palestinian security forces and one stone thrower.
A seventh Palestinian, armed with an AK-47 assault rifle and hand grenades, was killed during an attempt to infiltrate the Jewish settlement of Netzarim in central Gaza, the army said. In Khan Younis refugee camp to the south, a Palestinian gunman shot dead a soldier at a nearby base, the army said.
Troops later killed a 15-year-old in a Khan Younis playground, Palestinian medical officials and witnesses said. Military sources said troops fired after being shot at.
The deaths raised to 42 the number of Palestinians killed this week, most in Israeli military raids into Gaza prompted by cross-border rocket attacks by the Islamic militant group Hamas.