Israel bombs Gaza tunnels, sends back troops

The new raids followed the withdrawal of troops Friday from northeastern Gaza after a two-day operation that the military said was aimed at smashing "terror infrastructure" and that left 29 people dead.

On Saturday, ground forces launched a "limited incursion" near the Erez crossing point between Gaza and Israel in what the army said was a bid to destroy tunnels and "neutralise" bombs.

Overnight, war planes bombed a house in Gaza City the army said contained arms and ammunition and tunnels near the town of Rafah in the southern Gaza Strip.

Meanwhile Saturday, two Palestinian men wounded during an Israeli raid on Thursday have died, hospital sources said Saturday. One of them was hit by an air raid in the northern town of Beit Lahiya, and the second by a tank shell that struck his home in Gaza City.

A total of 147 Palestinians have now been killed since Israel launched a massive offensive against Gaza following the capture of an Israeli soldier on June 25, according to an AFP count.

Three armed groups claimed responsibility for taking the soldier captive.

The military says it aims to free the seized Corporal Gilad Shalit and stop Palestinian militant groups from firing rockets onto Israeli territory from the narrow coastal strip from which it withdrew last year after a 38-year presence.

The rocket attacks have sharply decreased during the past month, but two Israeli children were lightly wounded Friday when a rocket landed in the town of Ashkelon, an attack claimed by the hardline Islamic Jihad group.

The month-long offensive has also wreaked massive damage on the impoverished Gaza Strip, where electricity is now rationed and sewage left untreated.

European Union External Affairs Commissioner Benita Ferrero-Waldner told AFP after a visit to the territory on Thursday that the situation was critical.

"There is a situation of total crisis in the Gaza Strip," she said. "The EU clearly sees that the civilian population is suffering. We hope that there will be immediate work to put a stop to the violence on both sides."

Ferrero-Waldner came to Gaza to oversee the distribution of sorely needed aid, ensuring it went straight to the Palestinians and bypassed the Hamas government.

The EU, along with the United States, considers Hamas a terrorist group and suspended all direct aid to the Palestinian government following its upset election victory in January. Hamas has refused Western calls to renounce violence and recognize Israel.

Living conditions for the 1.4 million people in densely packed Gaza have badly deteriorated since the West suspended the direct aid.

Palestinian president Mahmud Abbas has demanded an immediate halt to Israel's offensive, condemning what he called "unacceptable acts" and charging that "Israel is clearly violating the Geneva convention" in attacking civilian areas.

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