Israel and Hamas in unofficial truce negotiations

Tensions remain high around Gaza after Israeli raids killed four Palestinians and two Thai workers were seriously wounded by rocket fire, with Israel's defence minister vowing to punish Hamas.

Reports indicated that a tentative ceasefire was holding on Thursday morning, after the intervention of Egypt to help mediate between the two sides. The Israeli military said that no rockets had been fired from Gaza after 17:30 GMT on Wednesday.

The truce was negotiated with the help of Egypt and appears to be holding, with no reports of fire overnight.

The latest violence began on Tuesday evening when Palestinian fighters fired six rockets at Israel shortly after a high-profile visit to the coastal enclave by the Qatari emir.

Several hours later, Israeli aircraft killed two fighters from Hamas's armed wing, the Ezzedine al-Qassam Brigades, in northern Gaza, sparking more rocket fire.

An early-morning raid near southern city of Rafah killed a third fighter from the Popular Resistance Committees (PRC), and later in the morning, a Hamas fighter hurt in the evening strikes died of his injuries, medics said.

Schools were closed on both sides of the border for fear of more attacks.

Hamas sources said the movement did not want the fighting to continue with families in Gaza busy preparing for this weekend's Eid Muslim holiday.

Earlier this week, Prime Minister Benjamin Netanyahu promised to continue "targeted attacks" on militants launching rockets into Israel.

"We didn't ask for this escalation and didn't initiate it," he said. "But if it continues, we are prepared to embark on a far more extensive and penetrating operation."

On Wednesday, more than 70 rockets were launched into southern Israel, injuring five people, two critically, according to the Israeli military.

In response, Israeli aircraft and tanks targeted rocket-launching sites in northern Gaza.

Hamas's military wing, the Izz al-Din Qassam Brigades, confirmed it had been involved in firing dozens of rockets and mortars into Israel.

In a statement, the Izz al-Din Qassam Brigades and a smaller Gaza-based militant group, the Popular Resistance Committees (PRC), said: "These holy missions come in response to the repeated, continuous crimes of the enemy against our people."

An Israeli military statement said: "Israeli Air Forice aircraft targeted a rocket launching site in the northern Gaza Strip. In addition, tank shells were fired towards terrorist targets in the Gaza Strip. Hits were confirmed."

Two loud explosions also shook Gaza City shortly after the attack that killed the Hamas gunman, but no casualties had been reported.

Palestinian negotiator Saeb Erakat said Israel "bears full responsibility for what happens to our people in Gaza."

Robert Serry, the UN's peace envoy, deplored the escalation, calling on all parties to exercise utmost restraint.

Meanwhile, Israel on Wednesday expelled 15 international activists who had tried and failed to reach Gaza by boat at the weekend in a bid to breach the maritime blockade on the territories, a spokeswoman for Israel's immigration service said.

"Fifteen foreign activists were expelled. Only two Norwegians are still in detention and awaiting expulsion," Sabine Hadad told the AFP news agency.

There were 30 pro-Palestinian activists and parliamentarians on board the Finnish-flagged Estelle which was intercepted by the Israeli navy on Saturday in international waters some 38 nautical miles off the 45km-long Gaza Strip.

Of that number, three were Israelis and 27 were foreign nationals. Ten were sent home on Sunday and Monday.

Among those on board were 79-year-old Canadian and former lawmaker Jim Manly, as well as five members of parliament from Norway, Sweden, Spain and Greece.

Israel says its blockade of the Gaza Strip is necessary to prevent weapons from entering the coastal territory, home to 1.6 million people.