Gaza factions agree new ceasefire

Warring Hamas and Fatah factions in Gaza have tonight declared a ceasefire.

Foreign Minister Mahmoud Zahar of Hamas announced the ceasefire is set to go into effect at 3am local time (1am Irish time).

Zahar spoke after a meeting between Prime Minister Ismail Haniyeh of Hamas and a representative of Palestinian President Mahmoud Abbas of Fatah, with the participation of Egyptian mediators. They flanked him during his statement.

Zahar said clashes that have killed more than 60 people are to halt, security forces are to return to their bases and suspects in killings are to be handed over.

But as he spoke, gunfire could still be heard in Gaza City.

Fatah spokesman Maher Mekdad said his group would observe the agreement.

"Despite all the bitterness and sadness that we are feeling, we will work to make it succeed," he said.

The agreement between the Palestinian factions came as a two-month truce between the Palestinians and Israel in the Gaza Strip was jeopardised by a Palestinian suicide bombing, the first since April, 2006.

The bomber, a 21-year-old from Gaza, struck the Israeli resort city of Eilat, killing three people and himself.

Hamas, which controls the Palestinian parliament and Cabinet, praised the attack as legitimate resistance, and Israeli leaders hinted that a military response was being considered.

"This is a grave incident, it's an escalation and we shall treat it as such," Defence Minister Amir Peretz said.