Israeli Prime Minister Ehud Olmert today denied knowledge of an impending deal to swap Palestinian prisoners for an Israeli soldier held by Palestinian militants for the past two months.

Israeli forces crossed into the Gaza Strip early today in a raid that captured a local Hamas militant leader and left his brother dead near a Gaza border town, Palestinian witnesses and officials said.

ISRAELI tanks and troops pulled back to the Israel-Gaza border yesterday after a particularly deadly incursion that killed 30 Palestinians over three days.

A Palestinian was killed when an Israeli tank shell hit his truck early today, and Israeli aircraft struck targets in several parts of Gaza.

Israeli Prime Minister Ehud Olmert said today that freeing Palestinian prisoners in exchange for a captured Israeli soldier would be a “major mistake”.

Israel sent aircraft to hit targets in the Gaza Strip early today, pressing ahead with its offensive aimed at freeing a captured soldier and halting Palestinian rocket fire, despite international criticism.

Israeli Prime Minister Ehud Olmert today said he had been on the verge of releasing Palestinian prisoners as a goodwill gesture before an Israeli soldier was captured.

Israeli forces today took over an area of northern Gaza that used to be home to three Jewish settlements, creating a temporary buffer zone meant to prevent Palestinian militants from firing rockets at Israeli towns and cities.

Palestinian militants today gave Israel 24 hours to start releasing hundreds of Palestinian prisoners, implying they will kill an abducted Israeli soldier tomorrow morning if their demands are not met.

A senior Israeli Cabinet minister today warned of a harsh military response in the Gaza Strip if an abducted Israeli is harmed by his Palestinian captors.

Israeli prime minister Ehud Olmert stepped up pressure on the Palestinian government, ordering his military to “do all it can” to free an abducted soldier and hinting Israel may arrest Hamas leaders in Gaza.

Israeli Prime Minister Ehud Olmert stepped up pressure on the Palestinian government today, ordering his military to “do all it can” to free an abducted soldier and hinting Israel may arrest Hamas leaders in Gaza.

Israeli aircraft blasted the office of Palestinian Prime Minister Ismail Haniyeh of Hamas early today, the latest military move aimed at winning freedom for an Israeli soldier held captive by Hamas militants in Gaza.

Palestinian militants holding an abducted Israeli soldier issued a new set of demands today, calling for a halt in Israel’s military offensive in Gaza and urging the release of 1,000 prisoners from Israeli jails.