THE FIERCEST clashes so far during Israel's war in Gaza, now in its 21st day, occurred yesterday when Israeli forces stepped up the pressure on Hamas, as marathon ceasefire contacts appeared to be reaching a successful conclusion.
As the fighting raged, Israel's point man for ceasefire talks, defence ministry official Amos Gilad, met Egyptian officials in Cairo, the day after Hamas representatives accepted the truce proposals in principle.
Israeli media reported last night that Mr Gilad gave an initial positive response, paving the way for a truce, probably over the weekend. Egyptian television reported that Israel had accepted the initiative in principle.
Israeli prime minister Ehud Olmert, defence minister Ehud Barak and foreign minister Tzipi Livni met Mr Gilad last night and were set to decide whether to accept a ceasefire, or order the army to press on with the military campaign. The security cabinet and full cabinet will convene to endorse their recommendations.
UN general secretary Ban Ki-moon said the main elements of a ceasefire were in place but the chances of success depended on Israel's political will.
US secretary of state Condoleezza Rice said Washington will sign a memorandum of understanding with Israel on efforts to prevent Iranian arms, destined for Hamas, reaching the Egyptian Sinai, from where they are smuggled into Gaza.
Yesterday Hamas interior minister Saeed Seyyam was killed in an Israeli air strike on his brother's Gaza city home. His brother and three other people were killed in the same attack. Mr Seyyam, who was directly responsible for the armed forces in Gaza, is considered to be one of the top five Hamas leaders in the Strip, and is the most senior Hamas official killed since the start of the war.
Earlier, Israel had shelled the UN headquarters in Gaza city, setting the compound on fire and wounding three staff, as Mr Ban met Israeli leaders in Jerusalem.
The UN chief expressed outrage over the incident. Mr Olmert told Mr Ban Israel troops fired back after coming under attack from militants in the compound. A senior UN official in Gaza, John Ging, dismissed the Israeli claims as "nonsense".
The al-Quds hospital caught fire after being hit in the Gaza city crossfire, as Palestinian gunmen fired mortars and rocket-propelled grenades in an effort to stop advancing Israeli troops.
A building housing the offices of a number of international media outlets was also hit by Israeli fire.