Israeli aircraft killed two Hamas militants in Gaza fighting early today, a day after Israel sealed the territory and bombed an empty Hamas government ministry in an intensifying campaign to halt rocket fire on Israeli border towns.

Israel today began releasing 429 Palestinian prisoners.

The Israeli military has arrested dozens of Hamas candidates for parliament and local councils as part of its new offensive against the Islamic militant group.

Israel’s Cabinet voted today to release up to 100 jailed Islamic militants ahead of Prime Minister Ariel Sharon’s visit to the US.

A US-backed Middle East peace initiative stalled in a wave of violence with three Palestinian suicide bombings in an 11-hour period.