Palestinians count the cost as Israeli army vows return

ISRAELI troops pulled back from two neighbourhoods in the sprawling Palestinian refugee camp of Rafah, leaving behind 40 dead and dozens of demolished and damaged homes, torn up roads and flattened cars.

Israel said its four-day military offensive, in search of arms-smuggling tunnels and militants, will continue even though security officials said only one tunnel was uncovered, and it is believed many fugitives fled the camp before the army moved in.

Officials said at least 43 homes were demolished and dozens more damaged in the camp since the offensive began on Tuesday. Forty Palestinians had been killed, including gunmen and eight demonstrators hit by a tank shell.