An Israeli airstrike killed two Hamas militants today while Palestinian militants bombarded southern Israel with home-made rockets, as a 16-month-old cease-fire unravelled and the two sides moved closer toward a broader conflict.

Two Egyptian security officers were killed today in an exchange of fire with Israeli troops after crossing the border into Israel.

Israel could reoccupy parts of the Gaza Strip if the Hamas-led government does not halt Palestinian rocket fire from the area, a senior military commander said.