Israel killed two Hamas militants in an air strike on the Gaza Strip today.
An Israeli military spokeswoman said the air force targeted "a group of armed terrorists" in the northern part of the territory near Jabalya refugee camp.
In addition to the two members of Hamas's Izz el-Deen al-Qassam Brigades killed in the strike, several people were wounded and a house was damaged, ambulance crews said.
Palestinian President Mahmoud Abbas yesterday proposed a new truce between militants and Israel and said he would meet Israeli Prime Minister Ehud Olmert next week.
Mr Olmert, in a speech to Israel's parliament, said: "We have no intention of reaching any kind of settlement, neither with Hamas nor with Islamic Jihad. We will hit them and continue to hit them."
Hamas and other militant groups have fired more than 270 rockets from Gaza, killing two Israelis, over the past two weeks. Israel has hit back mainly with air strikes, killing more than 40 Palestinians, most of them fighters.