Overnight fighting in the southern Gaza Strip has cast doubts over prospects of a resumption of peace talks between Israelis and Palestinians.
Israel fired two missiles at a Palestinian security post near a refugee camp in the Gaza Strip last night after Palestinian militants fired up to seven mortar bombs at a nearby Jewish settlement.
The clashes come despite remarks by Israeli Foreign Minister Shimon Peres that dialogue aimed at restoring calm to the region has begun.
Mr Peres has constantly favoured dialogue as a means of ending the Palestinian intefadeh, despite Prime Minister Ariel Sharon’s propensity towards finding a military solution to Palestinian violence.