MORE than a thousand Palestinian pilgrims set fire yesterday to temporary camps set up by the Egyptian government to house them until a dispute over how they will return to the Gaza Strip is resolved.

Israel’s army received approval today to broaden its ground operations against Gaza Strip militants who have been barraging Israeli border towns with deadly rocket fire, but no large-scale incursion is in the works, military officials said.

Israel’s Prime Minister Ehud Olmert said he authorised the army to do whatever it takes to halt Palestinian rocket fire, but warned his Cabinet there was no quick solution.

Israeli-Palestinian violence escalated dangerously when Israel killed five militants in airstrikes and hinted Hamas political leaders could be their next target.

Hamas announced it would begin observing a unilateral ceasefire in the Gaza Strip starting at 6pm BST today, after a day of heavy fighting that left at least 16 people dead.