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Israel's army has said it has conducted "targeted strikes" against Hamas in eastern Rafah, after rejecting Hamas's agreement to a ceasefire deal.
Armed factions in Gaza fired rockets into southern Israel in response.
Hamas had earlier said it would accept a ceasefire deal drawn up by Egyptian mediators. It was however rejected by Israel as "far from meeting" its "core demands".
It is not clear exactly what Hamas has agreed to, but the proposal is thought to include the release of hostages and the return of displaced Palestinians within Gaza.
Israel's war cabinet voted to continue operations but is however sending a delegation to indirect talks in Cairo.
The war began when Hamas fighters stormed into southern Israel on 7 October, killing about 1,200 people and seizing 252 hostages, according to Israeli tallies.
More than 34,700 people have been killed in Gaza since then, the Hamas-run health ministry says. (BBC)
