Israeli Prime Minister Benjamin Netanyahu has said Israel will not stop its military campaign in Gaza until long-term calm is restored, shunning increasingly vocal demands for a truce.
"The campaign in Gaza is continuing," he said at the end of a seven-hour humanitarian lull which saw violence subside in the battered enclave.
"This operation will only end when quiet and security is established for the citizens of Israel for a prolonged period."
Palestine and Israel accused each other of launching attacks soon after the seven-hour Israeli ceasefire intended to allow humanitarian aid into Gaza came into force today.
Palestinians said Israel had bombed a refugee camp in Gaza City, killing an eight-year-old girl and wounding 29 other people, while Israel said at least four rockets had been fired at its territory from Gaza.
Gaza Health Ministry spokesman Ashraf Al-Qidra said the airstrike on a house in Shati camp took place after the truce was scheduled to start this morning.
An Israeli military spokeswoman said she was checking the refugee camp attack.
She said four rockets had been fired from Gaza since the truce started and two had crashed inside Israel.
There were no reports of casualties or damage.
In Jerusalem, a heavy construction vehicle slammed into a bus, overturning it in what Israeli police said was a suspected terrorist attack.
No passengers were on the bus but a passerby died after being run over by the digger, and police said its driver was shot dead.
Israeli media identified the driver as a Palestinian from East Jerusalem.
Israel announced a ceasefire to free up humanitarian aid and allow some of the hundreds of thousands of Palestinians displaced by almost four weeks of war to go home.
The announcement met with suspicion from Gaza's ruling Islamist Hamas movement and followed unusually strong censure from the US at the apparent Israeli shelling yesterday of a UN-run shelter that killed ten people.
An Israeli defence official said the ceasefire, which ran from 10am to 5pm (8am-3pm Irish time), applied everywhere except areas of the southern town of Rafah, where ground forces have intensified assaults after three soldiers died in a Hamas ambush there on Friday.
"If the truce is breached, the military will return fire during the declared duration of the truce," the official said.
The official said east Rafah was the only Gaza urban area in which troops and tanks were still present, having been withdrawn or redeployed near the border with Israel over the weekend.
Mark Regev, spokesman for Israeli Prime Minister Benjamin Netanyahu, told CNN that Israel's goal with the truce was "to assist with the humanitarian relief" of the people of Gaza.
Hamas, whose envoys are in Egypt for truce negotiations that Israel has shunned in anger at Friday's ambush in Rafah, said attacking the house after the Israeli ceasefire began showed the truce was a media stunt.
"We urge our people to continue to be cautious," said spokesman Sami Abu Zuhri.
Israel is winding down its offensive in the absence of a mediated disengagement deal with Hamas.
It says the army has completed the main objective of the ground assault, the destruction of cross-border infiltration tunnels from Gaza.
"Every attack tunnel we knew about has been destroyed," Amos Gilad, a senior defence official, said on Israel Radio.
In a predawn air strike, Israel killed Danyal Mansour, a senior commander of Islamic Jihad, a Palestinian group fighting alongside Hamas.
French President Francois Hollande has called for an end to massacres in Gaza.
Speaking at a ceremony to mark the 100th anniversary of the outbreak of World War I Mr Hollande said, "When I see what is happening with the Christians in Iraq, the minorities in Syria, massacres every day. What is happening too in Gaza, massacres. ... We have to act,"
Israel launched its offensive on 8 July following a surge in Hamas rocket salvos.
It escalated from air and naval barrages to overland incursions centred on Gaza's tunnel-riddled eastern frontier, but also pushed into densely populated towns.
Gaza officials say 1,804 Palestinians, most of them civilians, have been killed and more than a quarter of the impoverished enclave's 1.8 million residents displaced.
As many as 3,000 Palestinian homes have been destroyed or damaged.
Toy store reverses decision on Israeli products
Staff at a toy store in Dublin have been told to remove a sign advising customers that Israeli products were no longer available in the shop.
The sign was posted at the entrance to the Smyths store on Jervis Street last week.
In a statement, the company said it did not engage in political affairs.
It said the decision to remove products from the shelves had been reversed.
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