Israel has pulled out of talks in Cairo on extending a Gaza truce with Hamas after a 72-hour ceasefire ended and violence resumed this morning.
"Israel will not negotiate under fire," an Israeli said, noting Israel had informed Egypt of its willingness to extend the truce by another three days before "Hamas breached the ceasefire".
Hamas had announced that all Palestinian factions agreed not to renew the ceasefire, which ended at 6am Irish time.
It blamed Israel for "refusing to accommodate our demands", while stressing talks with Egyptian mediators were continuing in Cairo.
Israel's Prime Minister Benjamin Netanyahu has ordered the army to retaliate "forcefully", with a series of strikes.
A Gaza hospital official said a ten-year-old Palestinian child was killed in an Israeli air strike this morning.
The Israeli army said Hamas has fired more than 30 rockets at Israel today.
It said two rockets struck Israel before the ceasefire expired, but Hamas denied any responsibility.
Military spokesman Lieutenant-Colonel Peter Lerner said: "The renewed rocket attacks by terrorists at Israel are unacceptable, intolerable and short-sighted.
"Hamas' bad decision to breach the ceasefire will be pursued by the IDF. We will continue to strike Hamas, its infrastructure, its operatives and restore security for the State of Israel."
The Egyptian Foreign Ministry said progress had been made in the talks and it urged both sides to reinstate the truce and return to negotiations.
It said agreement was reached on most of the major issues, with only limited issues remaining unresolved.
The Palestinians had wanted Israel to agree in principle to demands that include a lifting of a blockade on Gaza, the release of prisoners and the opening of a sea port.
"We have one position, we refuse to extend the ceasefire. It is a final decision. Israel did not propose anything," said one senior Hamas official after a long meeting with Egyptian mediators.
The conflict has killed 1,876 Palestinians, most of them civilians.
Hamas said yesterday it had executed an unspecified number of Palestinians as Israeli spies.
Israel said 64 of its soldiers and three civilians have died in the fighting that began on 8 July, after a surge in Palestinian rocket attacks.
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