Israel says it has regained control of the Gaza border, pounding the enclave with the worst air strikes in the 75-year history of its conflict with the Palestinians despite a threat by Hamas Islamist militants to execute captives.
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CONFLICT
Israel has called up an unprecedented 300,000 reservists, is blockading Gaza and may be planning a ground assault.Israeli TV channels say Hamas fighters killed some 900 people in their unprecedented weekend attack including 260 at a desert music festival. Gaza's health ministry puts the Palestinian death toll at 770 in retaliatory strikes.Hamas said it would execute an Israeli captive for every civilian house bombed without warning and will not negotiate over hostages "under fire".With Israel on a war footing, Prime Minister Benjamin Netanyahu's coalition was about to incorporate opposition politicians a national unity government.Israeli shelling on Lebanon killed at least three Hezbollah militants, the group said.Various nations have reported citizens perished and abducted by Hamas. Thailand said 18 had died, Argentina 15, the US 11. More than 10 Britons are feared dead or missing, the BBC broadcaster reported.The UN said Israel had struck residential buildings, schools and UN buildings in Gaza, while 180,000 Palestinians had been made homeless.
GLOBAL REACTION AND DIPLOMACY
Iran's top authority Ayatollah Ali Khamenei said Tehran was not involved in Hamas' attack though he "kissed the hands" of those doing damage to Israel.The US, which already provides Israel with $US3.8 billion ($A5.9 billion) in military assistance each year, is giving extra security help but has no intention of sending troops, officials said.The European Union backtracked in disarray on an announcement that aid to Palestinians had been suspended.Palestinian President Mahmoud Abbas is expected to visit Moscow.Qatari mediators have held calls to try to negotiate freedom for Israeli women and children seized by Hamas in exchange for 36 Palestinian women and children in Israel's prisons, a source told Reuters. An Israeli official said no negotiations were under way.The United States has warned Hamas backer Iran not to get involved in the conflict.Russia says it is in contact with both sides and wants to help resolve the conflict.
MARKETS AND BUSINESS
Oil prices eased after jumping more than four per cent in the previous session, gold gained and the safe-haven US dollar edged up against the euro.Global companies have suspended some operations in Israel.Major international air carriers suspended or reined in flights to or from Tel Aviv.Israeli shekel hits weakest level since early 2016.
QUOTES
"We don't have safety or security. What's this life? This is not a life" - Gaza resident Salah Hanouneh, 73."We will reach them (Hamas) everywhere" - Israeli military spokesperson Daniel Hagari."The Zionist regime's own actions are to blame for this disaster" - Iran's Ayatollah Ali Khamenei."Release my son ... I'm speechless. It's completely dark" - mother of Thai migrant worker Natthaporn Onkaew held hostage."Fom paradise to hell, in one second." - Elad Hakim, survivor of musical festival hit by Hamas.
Australian Associated Press
