Hamas Leader Calls Israeli Attacks 'Holocaust,' Says Negotiations Are Over Gaza Conflict Protests in Europe Turn Violent Israel and Hamas Reject U.N. Truce, Intensify Attacks U.N. Keeps Gaza Aid Delivery on Hold Pending Cease-Fire Iran Bans Homicide Bomber Volunteers, Saying It Will Assist Hamas in Other Ways Israeli Officials Arrive in Egypt to Discuss Cease-Fire As Israel Offensive Pushes Ahead, Hopes for Proposed Gaza Cease-Fire Fade Israel Hits Second U.N. School, Blasts Way Into Southern Gaza European Jews Attacked in Response to Gaza Conflict Red Cross: Full-Blown Aid Crisis in Gaza With Food, Water, Power Shortages Israeli Ground Forces Cross Border Into Gaza Strip Airstrike in Gaza Reportedly Kills Senior Hamas Leader Israeli Airstrikes in Gaza Intensify as Cease-fire Push Gains Momentum Israel Soon May Send Troops Into Gaza Strip if Cease-fire Not Reached Son of Hamas Leader Gives Glimpse Into Terror Organization Hamas Adopting Rocket Tactics Used by Hezbollah Israel Considers Offering Hamas a Cease-Fire Israelis Face Satisfaction, Fear Over Gaza Attacks EU Leaders Push for Gaza Cease-Fire Red Cross Sending Tons of Medical Aid to Gaza Israel At 'War to the Bitter End,' Strikes Key Hamas Sites U.N. Demands Immediate Gaza Cease-Fire Israel Vows to Expand Gaza Airstrikes as Death Toll Passes 200 Palestinian President Sends Forces to Disperse Protesters U.S. Condemns Hamas in Midst of Israeli Strikes Arab Nations Protest Israeli Air Strike in Gaza Palestinian Rockets Kill 2 Schoolgirls in Gaza Olmert Delivers 'Last Minute' Warning to Gaza 3 Killed in Deadliest Clash Between Israel, Hamas Since Truce Israel Releases 224 Palestinian Prisoners Negotiator: Israel Asks to Annex 6.8 Percent of West Bank for Peace Deal Israeli Forces on Alert for Extremist Settler Violence After West Bank Evictions Israeli Forces Clash With Jewish Settlers Over Disputed West Bank House Reporting from Gaza City and Jerusalem -- Israeli troops stepped up attacks on Hamas fighters on the outskirts of Gaza City on Monday as the Palestinian death toll surpassed 900 and Hamas militants managed to fire off a new volley of rockets into southern Israel.

On the 17th day since Israel launched its offensive into the Gaza Strip, the conflict appeared to be reaching a crucial threshold that could result in escalated combat or a negotiated resolution. In a televised statement from a hide-out presumed to be in Gaza, a top leader of the battered Hamas regime mixed defiance with language suggesting openness to diplomacy. Ismail Haniyeh, who served as prime minister under a previous Palestinian unity government, looked weary and cited Koranic verses and prayers during the speech aired by Hamas-run television, his second since the conflict began.

"We deal positively with any initiative that can end the aggression and allow the withdrawal of the occupation troops and end the siege so that we can stop the bloodshed," Haniyeh said.

But he added: "I am confident that we will reach the point we want, which is victory and the defeat of this aggression. So I want to salute our fighters in the field. We tell them: We kiss your heads and hands and the land underneath you; you are defending the dignity of our people and nation Israeli security officials say the Israeli onslaught has caused an increasing number of Hamas combatants to give up the fight and melt into the population, while others hole up in complexes of subterranean bunkers. Top Hamas figures are hiding in a bunker underneath a Gaza City hospital because they believe Israel will not bomb the medical facility, the officials said.

Meanwhile, former British Prime Minister Tony Blair arrived in Cairo for talks with Egyptian President Hosni Mubarak, a key player in diplomatic efforts to reach a negotiated solution that would end the fighting in Gaza. Israel wants Egypt and the international community to shut down the smuggling tunnels along Gaza's southern border that provide Hamas with rockets used in attacks into Israel.

Israeli Foreign Minister Tzipi Livni on Monday described the talks in Cairo as negotiations "against Hamas and not with it." Israeli leaders say they are determined to pursue the offensive until a security arrangement ensures an end to Hamas rocket attacks. I have no intention of negotiating with Hamas, and I don't need them to sign some paper, and what Hamas has to say is meaningless," Livni said in an interview with Army Radio. "This is called deterrence: They know that the next time they attack us they will be hurt."

Monday, Israeli troops moved into the northern and southern outskirts of battered Gaza City, according to United Nations officials and witnesses. But the military did not move into the city center, where close-quarters combat would further endanger civilians. (less info)