Israeli aircraft demolished two money exchange shops in Gaza used to channel funds to Hamas militants, the military said tonight.

Moderate Palestinian President Mahmoud Abbas and Prime Minister Ismail Haniyeh of Hamas made a new push today to restore a cease-fire with Israel that collapsed under a barrage of Hamas rocket fire.

Palestinian president Mahmoud Abbas has called for an early election to end his violent clash with Hamas, in a gamble that banks on the support of Palestinians as he seeks to weaken the Islamic militants, avoid civil war and continue peace overtures with Israel.

Palestinian President Mahmoud Abbas announced today that he would call new presidential and parliament elections at the earliest possible date, in a bold challenge to ruling Hamas militants that risked sparking a full-scale civil war.

Hamas militants today burst into the Rafah border terminal, sparking a gunbattle with guards before taking control of the crossing.