Hamas-Israel ceasefire takes hold but mistrust runs deep

CAIRO/GAZA (Reuters) - A ceasefire between Israel and Gaza's Hamas rulers took hold on Thursday after eight days of conflict, although deep mistrust on both sides cast doubt on how long the Egyptian-sponsored deal can last.

Even after the ceasefire came into force late on Wednesday, a dozen rockets from the Gaza Strip landed in Israel, all in open areas, a police spokesman said. In Gaza, witnesses reported an explosion shortly after the truce took effect at 9 p.m (1900 GMT), but there were no casualties and the cause was unclear.

The deal prevented, at least for the moment, an Israeli ground invasion of the Palestinian enclave following bombing and rocket fire which killed five Israelis and 162 Gazans, including 37 children.

But trust was in short supply. The exiled leader of Hamas, Khaled Meshaal, said his Islamist movement would respect the truce if Israel did, but would respond to any violations. "If Israel complies, we are compliant. If it does not comply, our hands are on the trigger," he told a news conference in Cairo.

Israeli Prime Minister Benjamin Netanyahu said he had agreed to "exhaust this opportunity for an extended truce", but told his people a tougher approach might be required in the future.

Both sides quickly began offering differing interpretations of the ceasefire, brokered by Egypt's new Islamist government and backed by the United States, highlighting the many actual or potential areas of discord.

If it holds, the truce will give 1.7 million Gazans respite from days of ferocious air strikes and halt rocket salvoes from militants that unnerved a million people in southern Israel and reached Tel Aviv and Jerusalem for the first time.

"Allahu akbar, (God is greatest), dear people of Gaza you won," blared mosque loudspeakers in Gaza as the truce took effect. "You have broken the arrogance of the Jews."

Fifteen minutes later, wild celebratory gunfire echoed across the darkened streets, which gradually filled with crowds waving Palestinian flags. Ululating women leaned out of windows and fireworks lit up the sky.

Meshaal thanked Egypt for mediating and praised Iran for providing Gazans with financing and arms. "We have come out of this battle with our heads up high," he said, adding that Israel had been defeated and failed in its "adventure".

Some Israelis staged protests against the deal, notably in the southern town of Kiryat Malachi, where three people were killed by a Gaza rocket during the conflict, army radio said.

Netanyahu said he was willing to give the truce a chance but held open the possibility of reopening the conflict. "I know there are citizens expecting a more severe military action, and perhaps we shall need to do so," he said.

The Israeli leader, who faces a parliamentary election in January, delivered a similar message earlier in a telephone call with U.S. President Barack Obama, his office said.

"AN OPEN PRISON"

According to a text of the agreement seen by Reuters, both sides should halt all hostilities, with Israel desisting from incursions and targeting of individuals, while all Palestinian factions should cease rocket fire and cross-border attacks.

The deal also provides for easing Israeli restrictions on Gaza's residents, who live in what British Prime Minister David Cameron has called an "open prison".

The text said procedures for implementing this would be "dealt with after 24 hours from the start of the ceasefire".

Israeli sources said Israel would not lift a blockade of the enclave it enforced after Hamas, which rejects the Jewish state's right to exist, won a Palestinian election in 2006.

However, Meshaal said the deal covered the opening of all of the territory's border crossings. "The document stipulates the opening of the crossings, all the crossings, and not just Rafah," he said. Israel controls all of Gaza's crossings apart from the Rafah post with Egypt.

Hamas lost its top military commander to an Israeli strike in the conflict and suffered serious hits to its infrastructure and weaponry, but has emerged with its reputation both in the Arab world and at home stronger.

Israel can take comfort from the fact it dealt painful blows to its enemy, which will take many months to recover, and showed that it can defend itself from a barrage of missiles.

"No one is under the illusion that this is going to be an everlasting ceasefire. It is clear to everyone it will only be temporary," said Michael Herzog, a former chief of staff at the Israeli ministry of defence.

"But there is a chance that it could hold for a significant period of time, if all goes well," he told Reuters.

Egypt, an important U.S. ally now under Islamist leadership, took centre stage in diplomacy to halt the bloodshed. Cairo has walked a fine line between its sympathies for Hamas, an offshoot of the Muslim Brotherhood to which President Mohamed Mursi belongs, and its need to preserve its 1979 peace treaty with Israel and its ties with Washington, its main aid donor.

Announcing the agreement in Cairo, Egyptian Foreign Minister Mohamed Kamel Amr said mediation had "resulted in understandings to cease fire, restore calm and halt the bloodshed".

U.S. Secretary of State Hillary Clinton, standing beside Amr, thanked Mursi for peace efforts that showed "responsibility, leadership" in the region.

The Gaza conflict erupted in a Middle East already shaken by last year's Arab uprisings that toppled several veteran U.S.-backed leaders, including Egypt's Hosni Mubarak, and by a civil war in Syria, where President Bashar al-Assad is fighting for survival.

In his call with Netanyahu, Obama in turn repeated U.S. commitment to Israel's security and promised to seek funds for a joint missile defence program, the White House said.

BUS BOMBING

The ceasefire was forged despite a bus bomb explosion that wounded 15 Israelis in Tel Aviv earlier in the day and despite more Israeli air strikes that killed 10 Gazans. It was the first serious bombing in Israel's commercial capital since 2006.

Israel, the United States and the European Union all classify Hamas as a terrorist organization. It seized the Gaza Strip from the Western-backed Palestinian President Mahmoud Abbas in 2007 in a brief but bloody war with his Fatah movement.

"This is a critical moment for the region," Clinton said. "Egypt's new government is assuming the responsibility and leadership that has long made this country a cornerstone for regional stability and peace."

In Amman, U.N. chief Ban Ki-moon urged both sides to stick to their ceasefire pledges. "There may be challenges implementing this agreement," he said, urging "maximum restraint".

(Additional reporting by Noah Browning in Gaza, Ori Lewis, Allyn Fisher-Ilan and Crispian Balmer in Jerusalem, Yasmine Saleh, Shaimaa Fayed and Tom Perry in Cairo, Suleiman al-Khalidi in Amman and Margaret Chadbourn in Washington; Writing by Alistair Lyon and David Stamp; Editing by Louise Ireland)

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Tennis: Nadal back in training after layoff

MADRID: Former world No.1 Rafael Nadal has returned to training at his Mallorca base after nearly five months on the sidelines with a knee injury.

"Today was my first training session after so many weeks out," the Spaniard said on his Facebook page "I am making progress and I hope to continue to do so."

Nadal last played at Wimbledon on June 28 when he lost to the unseeded Lukas Rosol of the Czech Republic in the second round.

The 26-year-old was subsequently diagnosed as suffering with Hoffa syndrome, an inflammation of the fatty tissue situated behind the kneecap in his left knee, a problem that has sidelined him several times over the years.

He was unable to defend his title at the London Olympics, missed out on the US Open and was also unavailable for last weekend's Davis Cup final which saw the Czech Republic unseat Spain as title-holders.

Nadal's world ranking has fallen to fourth behind, Novak Djokovic, Roger Federer and Andy Murray, and compatriot David Ferrer is close to moving past him also.

There was no word on when Nadal would return to competitive action, but he has said that his next target would be to get fully fit in time for the year's first Grand Slam event - the Australian Open in the second half of January.

- AFP/fa

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Cyclists set out for green GDP

SILIGURI: A group of environmental activists set out from here on a 2,000km awareness yatra on Tuesday to press for the introduction of what they are calling gross environmental product (GEP), a measure similar to GDP for monitoring India's natural resources.

The 11-member team will travel on bicycles from Siliguri in north Bengal to Dehradun in Uttarakhand, covering the distance in 40 days. They will hold meetings along the way to spread the word on why India needs to track its natural resources such as water, air, soil, forests etc.

"Only a stable ecology can lead to a stable economy. Just as the government releases GDP figures, it should also come out with an annual GEP, which would be a tabulation of how each of our natural resources was spent in that year," said Anil P Joshi, who is leading the yatra. The group, consisting of activists aged 19 to 72, would be travelling through Patna, Varanasi, Allahabad, Kanpur, Mathura and Delhi, interacting with people to popularize the demand for GEP. "Our mission is to create mass awareness about the need to formulate an ecological growth measure so people know about the health of India's environment," said Joshi, a Padma Shri-awardee who runs a Dehra Dun-based NGO, Himalayan Environmental Studies and Conservation Organization.

GEP is somewhat similar to the concept of a 'green GDP' — gross domestic product after being adjusted for environmental costs of economic activity — which the Union environment ministry hopes to roll out by 2015.

The team would cross 55 districts and more than a 1,000 villages to reach the Himalayas. "Our other motto is save the Himalayas. For ages, this mountain range has been providing life to 65% of Indians. Today, Himalayan ecology is threatened and we wish to raise awareness about what this means for people living in the plains," Joshi said.

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OB/GYNs back over-the-counter birth control pills

WASHINGTON (AP) — No prescription or doctor's exam needed: The nation's largest group of obstetricians and gynecologists says birth control pills should be sold over the counter, like condoms.

Tuesday's surprise opinion from these gatekeepers of contraception could boost longtime efforts by women's advocates to make the pill more accessible.

But no one expects the pill to be sold without a prescription any time soon: A company would have to seek government permission first, and it's not clear if any are considering it. Plus there are big questions about what such a move would mean for many women's wallets if it were no longer covered by insurance.

Still, momentum may be building.

Already, anyone 17 or older doesn't need to see a doctor before buying the morning-after pill — a higher-dose version of regular birth control that can prevent pregnancy if taken shortly after unprotected sex. Earlier this year, the Food and Drug Administration held a meeting to gather ideas about how to sell regular oral contraceptives without a prescription, too.

Now the influential American College of Obstetricians and Gynecologists is declaring it's safe to sell the pill that way.

Wait, why would doctors who make money from women's yearly visits for a birth-control prescription advocate giving that up?

Half of the nation's pregnancies every year are unintended, a rate that hasn't changed in 20 years — and easier access to birth control pills could help, said Dr. Kavita Nanda, an OB/GYN who co-authored the opinion for the doctors group.

"It's unfortunate that in this country where we have all these contraceptive methods available, unintended pregnancy is still a major public health problem," said Nanda, a scientist with the North Carolina nonprofit FHI 360, formerly known as Family Health International.

Many women have trouble affording a doctor's visit, or getting an appointment in time when their pills are running low — which can lead to skipped doses, Nanda added.

If the pill didn't require a prescription, women could "pick it up in the middle of the night if they run out," she said. "It removes those types of barriers."

Tuesday, the FDA said it was willing to meet with any company interested in making the pill nonprescription, to discuss what if any studies would be needed.

Then there's the price question. The Obama administration's new health care law requires FDA-approved contraceptives to be available without copays for women enrolled in most workplace health plans.

If the pill were sold without a prescription, it wouldn't be covered under that provision, just as condoms aren't, said Health and Human Services spokesman Tait Sye.

ACOG's opinion, published in the journal Obstetrics & Gynecology, says any move toward making the pill nonprescription should address that cost issue. Not all women are eligible for the free birth control provision, it noted, citing a recent survey that found young women and the uninsured pay an average of $16 per month's supply.

The doctors group made clear that:

—Birth control pills are very safe. Blood clots, the main serious side effect, happen very rarely, and are a bigger threat during pregnancy and right after giving birth.

—Women can easily tell if they have risk factors, such as smoking or having a previous clot, and should avoid the pill.

—Other over-the-counter drugs are sold despite rare but serious side effects, such as stomach bleeding from aspirin and liver damage from acetaminophen.

—And there's no need for a Pap smear or pelvic exam before using birth control pills. But women should be told to continue getting check-ups as needed, or if they'd like to discuss other forms of birth control such as implantable contraceptives that do require a physician's involvement.

The group didn't address teen use of contraception. Despite protests from reproductive health specialists, current U.S. policy requires girls younger than 17 to produce a prescription for the morning-after pill, meaning pharmacists must check customers' ages. Presumably regular birth control pills would be treated the same way.

Prescription-only oral contraceptives have long been the rule in the U.S., Canada, Western Europe, Australia and a few other places, but many countries don't require a prescription.

Switching isn't a new idea. In Washington state a few years ago, a pilot project concluded that pharmacists successfully supplied women with a variety of hormonal contraceptives, including birth control pills, without a doctor's involvement. The question was how to pay for it.

Some pharmacies in parts of London have a similar project under way, and a recent report from that country's health officials concluded the program is working well enough that it should be expanded.

And in El Paso, Texas, researchers studied 500 women who regularly crossed the border into Mexico to buy birth control pills, where some U.S. brands sell over the counter for a few dollars a pack. Over nine months, the women who bought in Mexico stuck with their contraception better than another 500 women who received the pill from public clinics in El Paso, possibly because the clinic users had to wait for appointments, said Dr. Dan Grossman of the University of California, San Francisco, and the nonprofit research group Ibis Reproductive Health.

"Being able to easily get the pill when you need it makes a difference," he said.

___

Online:

OB/GYN group: http://www.acog.org

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Clinton Pledges to 'De-Escalate' Gaza Conflict

Secretary of State Hillary Clinton met for more than two hours today behind closed doors with Israeli Prime Minister Benjamin Netanyahu and other Israeli officials, saying she sought to "de-escalate the situation in Gaza."

Clinton, who flew to Israel today, appeared with Netanyahu ahead of their 4 p.m. ET meeting to discuss a possible ceasefire to the fighting between Israel and Islamic militants in Gaza.

"They discussed efforts to de-escalate the situation and bring about a sustainable outcome that protects Israel's security and improves the lives of civilians in Gaza," State Department spokeswoman Victoria Nuland said in a written statement after the meeting. "They also consulted on [Clinton's] impending stops in Ramallah and Cairo, including Egyptian efforts to advance de-escalation. They pledged to stay in close touch as she continues her travels."

The meeting came amid statements from Hamas earlier today that a ceasefire would soon be announced.

Netanyahu said he would prefer to use "diplomatic means" to find a solution to the fighting, but that Israel would take "whatever actions necessary" to defend its people.

"One of the things that we are doing is trying to resist and counter a terrorist barrage which is aimed directly at our civilians," Netanyahu said. "No country can tolerate a wanton attack on its civilians."

Clinton relayed a message from President Obama, reinforcing America's commitment to Isarael's security and calling for an end to the rockets coming from "terrorist orgnaizations in Gaza."

The Israel-Gaza Conflict in Pictures

Matty Stern/U.S. Embassy Tel Aviv/Getty Images

Israeli-Palestinian Conflict: Families Pray for Ceasefire Watch Video

Middle East on the Brink: Israel Prepared to Invade Gaza Watch Video

"America's commitment to Israel's security is rock solid and unwavering. That is why we believe it is essential to de-escalate the situation in Gaza," Clinton said.

Clinton added that she would reiterate her message to Egyptian President Mohamed Morsi during a meeting on Wednesday.

"President Obama has emphasized the same points in his multiple conversations with president Morsi of Egypt and we appreciate President Morsi's personal leadership and Egypt's efforts thus far," she said. "As a regional leader and neighbor, Egypt has the opportunity and responsibility to continue playing a crucial and constructive role in this process. I will carry this message to Cairo tomorrow."

Clinton expressed her condolences for the Palestinian and Israeli civilians who have been killed in the violent outbreak.

The rocket fire between Israel and Hamas, which began six days ago, has claimed 126 Palestinian lives and three Israeli lives. A ceasefire, if reached, would bring a halt to the worst violence between Gaza and Israel in four years.

Israeli officials told ABC News earlier today that a final deal had not been brokered between Israel and Hamas, and that if a pact were reached, it would not be announced until after midnight local time, or 5 p.m. ET.

Hamas spokesman Sami Abu Zuhri told ABC News the news would be announced at a press conference in Cairo where Egyptian President Mohammed Morsi has been trying to broker an end to the fighting.

An Islamic Jihad website also reported that the ceasefire would go into effect tonight.

Clinton will also meet with Palestinian Authority President Mahmoud Abbas about the fighting.

In the meantime, however, Abu Zuhri called on all militant groups to continue firing rockets on Israel "in retaliation for the Israeli massacres."

Israeli missiles also continued to explode in Gaza while sirens sounded in Israel, signalling incoming rocket fire from Gaza.

Hamas said three Palestinian journalists were killed by an Israeli missile today and Israel said one of its soldiers was killed in by a Palestinian rocket today.

Gazans streamed out of northern neighborhoods during the afternoon after the Israel Defense Forces dropped leaflets telling residents to evacuate before dark. Scared Palestinians poured into Gaza City, cars and trucks piled high with belongings, many heading to schools for shelter.

There have been 126 Palestinian deaths in six days of fighting, just under half were civilians. Three Israelis were killed last Thursday when a rocket slammed into their apartment.

ABC News' Matt Gutman contributed to this report

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UN calls for tougher prosecution of pirates

UNITED NATIONS: The United Nations on Monday called for stronger prosecutions of pirates and more action by shipping companies to deter bandits at sea.

At a UN Security Council debate on maritime piracy, UN deputy secretary-general Jan Eliasson said that while attacks had been reduced off the coast of Somalia this year, numbers could take off again unless countries take action.

According to International Maritime Organization (IMO) figures, there were 291 attacks against ships in the first 10 months of the year and 293 crew are still hostage. East Africa, West Africa and Asia-Pacific are the worst hit zones.

Eliasson said there had to be tougher legal action against pirates.

"We need to strengthen the capacity of states to prosecute individuals suspected of piracy and to imprison convicted pirates," he said. "That effort must include deterring and suppressing the financing of piracy and the laundering of ransom money."

Eliasson also called on shipping firms to do more to protect themselves.

"Twenty per cent of vessels transiting high-risk waters do not implement security measures, and those vessels account for the overwhelming number of successfully pirated ships," he told the Security Council.

Piracy off Somalia has been curtailed because of fleets of international warships patrolling in shipping lanes and because so many tankers and freighters now have devoted security guards, according to experts.

The maritime industry estimates it is now paying at least $6.6 billion a year in extra security costs.

A Security Council statement released at the meeting called on all states "to criminalize piracy under their domestic law and to favorably consider the prosecution of suspected, and imprisonment of convicted pirates and their facilitators and financiers."

-AFP/ac

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Guj Parsis being cremated as vultures dwindle

VADODARA: When Dara Hakim, 89, a former Indian Navy deep-sea diver and prominent member of Vadodara's Parsi community passed away recently, his family chose cremation for his last rites. Though he did not leave any specific instructions, his wife Roda Hakim arranged for a cremation instead of the traditional Tower of Silence.

According to Zoroastrian beliefs, the best way to dispose of a body is to let it remain in the open at the Tower of Silence and be consumed by scavenging birds. With the vulture population dwindling in Vadodara, many in this community are preferring cremation as the final rite for their loved ones.

The first woman photo-journalist of the country, Homai Vyarawalla, too had left unambiguous instructions with her lawyer about her desire to be cremated. The Modi family, which owns the popular confectionaries store and restaurant in the city, had cremated their matriarch, Roshan Modi, after she wished for the same, last year. The oldest cremation that the community members recall is that of Dr Rustom Cama, father of Boman Cama, who now heads the Vadodara Parsi panchayat, in the 1980s.

It is individual choice. The Parsi panchayat has never formally discussed the topic. The families are free to take a decision, said Jal Patel, the immediate past president of the panchayat. Some families have opted for cremation in the past, although the majority still prefer the Tower of Silence, he added.

The community welcomes this liberal approach. Everyone realizes that the decision to cremate does not mean moving away from our tradition, itas a very practical solution to a raging problem, explained Modi.

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New push for most in US to get at least 1 HIV test

WASHINGTON (AP) — There's a new push to make testing for the AIDS virus as common as cholesterol checks.

Americans ages 15 to 64 should get an HIV test at least once — not just people considered at high risk for the virus, an independent panel that sets screening guidelines proposed Monday.

The draft guidelines from the U.S. Preventive Services Task Force are the latest recommendations that aim to make HIV screening simply a routine part of a check-up, something a doctor can order with as little fuss as a cholesterol test or a mammogram. Since 2006, the Centers for Disease Control and Prevention also has pushed for widespread, routine HIV screening.

Yet not nearly enough people have heeded that call: Of the more than 1.1 million Americans living with HIV, nearly 1 in 5 — almost 240,000 people — don't know it. Not only is their own health at risk without treatment, they could unwittingly be spreading the virus to others.

The updated guidelines will bring this long-simmering issue before doctors and their patients again — emphasizing that public health experts agree on how important it is to test even people who don't think they're at risk, because they could be.

"It allows you to say, 'This is a recommended test that we believe everybody should have. We're not singling you out in any way,'" said task force member Dr. Douglas Owens, of Stanford University and the Veterans Affairs Palo Alto Health Care System.

And if finalized, the task force guidelines could extend the number of people eligible for an HIV screening without a copay in their doctor's office, as part of free preventive care under the Obama administration's health care law. Under the task force's previous guidelines, only people at increased risk for HIV — which includes gay and bisexual men and injecting drug users — were eligible for that no-copay screening.

There are a number of ways to get tested. If you're having blood drawn for other exams, the doctor can merely add HIV to the list, no extra pokes or swabs needed. Today's rapid tests can cost less than $20 and require just rubbing a swab over the gums, with results ready in as little as 20 minutes. Last summer, the government approved a do-it-yourself at-home version that's selling for about $40.

Free testing is available through various community programs around the country, including a CDC pilot program in drugstores in 24 cities and rural sites.

Monday's proposal also recommends:

—Testing people older and younger than 15-64 if they are at increased risk of HIV infection,

—People at very high risk for HIV infection should be tested at least annually.

—It's not clear how often to retest people at somewhat increased risk, but perhaps every three to five years.

—Women should be tested during each pregnancy, something the task force has long recommended.

The draft guidelines are open for public comment through Dec. 17.

Most of the 50,000 new HIV infections in the U.S. every year are among gay and bisexual men, followed by heterosexual black women.

"We are not doing as well in America with HIV testing as we would like," Dr. Jonathan Mermin, CDC's HIV prevention chief, said Monday.

The CDC recommends at least one routine test for everyone ages 13 to 64, starting two years younger than the task force recommended. That small difference aside, CDC data suggests fewer than half of adults under 65 have been tested.

"It can sometimes be awkward to ask your doctor for an HIV test," Mermin said — the reason making it routine during any health care encounter could help.

But even though nearly three-fourths of gay and bisexual men with undiagnosed HIV had visited some sort of health provider in the previous year, 48 percent weren't tested for HIV, a recent CDC survey found. Emergency rooms are considered a good spot to catch the undiagnosed, after their illnesses and injuries have been treated, but Mermin said only about 2 percent of ER patients known to be at increased risk were tested while there.

Mermin calls that "a tragedy. It's a missed opportunity."

___

Online:

Task force recommendation: http://www.uspreventiveservicestaskforce.org

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Indy Home Blast Intentional? Now a Homicide Probe

The probe into a massive explosion earlier this month in Indianapolis that killed two people and damaged dozens of homes is now an active criminal homicide investigation, with authorities saying they believe the blast was caused intentionally, ABC News has learned.

At a meeting this evening at the Southport Presbyterian Church to update residents of the Richmond Hill subdivision where the blast occurred, Marion County prosecutor Terry Curry said the criminal homicide investigation is ongoing.

The ATF offered up to $10,000 for information that leads to an arrest in the case.

Matt Kryger/The Indianapolis Star/AP Photo

Indianapolis Neighborhood Devastated by Explosion Watch Video

Breezy Point, Queens Fire: Neighborhood Burned Down Overnight Watch Video

The explosion in the subdivision just south of the city on Saturday, Nov. 10, killed John and Jennifer Longworth. Their funeral was held earlier today.

Much of the attention since the explosion has centered on Monserrate Shirley and her boyfriend Mark Leonard, who lived at the house in the center of the blast area.

John Shirley, who owns that house but now lives elsewhere, told ABC News two days after the blast that he believed that his ex-wife, who still lives in the house, was to blame for the explosion.

Shirley claimed he knew that the furnace in the house was broken and had not been fixed properly, if at all.

"If I were to suspect anything, that's where the problem was," said Shirley, who noted that his ex-wife Monserrate Shirley had a "protective order" against him. However, Shirley said he did not believe his ex-wife would have caused the explosion intentionally.

"I don't think so, because there was no real reason to," Shirley said. "I pay a thousand dollars a month for one kid because she had a lawyer and I did not, so she has more than enough money. At one point the house was slipping into foreclosure. Last spring she had a buyer but she chose not to sell. We were in some bankruptcy but that's pretty well cleared up."

Monserrate Shirley and Leonard were reportedly visiting a casino at the time of the blast.

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Gaza truce pressure builds, Cairo in focus

GAZA/JERUSALEM (Reuters) - International pressure for a ceasefire in the Gaza Strip puts Egypt's new Islamist president in the spotlight on Tuesday after a sixth day of Palestinian rocket fire and Israeli air strikes that have killed over 100 people.

Israel's leaders weighed the benefits and risks of sending tanks and infantry into the densely populated coastal enclave two months before an Israeli election, and indicated they would prefer a diplomatic path backed by world powers, including U.S. President Barack Obama, the European Union and Russia.

Any such solution may pass through Egypt, Gaza's other neighbor and the biggest Arab nation, where the ousting of U.S. ally Hosni Mubarak and election of President Mohamed Mursi is part of a dramatic reshaping of the Middle East, wrought by the Arab Spring and now affecting the Israeli-Palestinian conflict.

Mursi, whose Muslim Brotherhood was mentor to the founders of Hamas, took a call from Obama on Monday telling him the group must stop rocket fire into Israel - effectively endorsing Israel's stated aim in launching the offensive last week. Obama, as quoted by the White House, also said he regretted civilian deaths - which have been predominantly among the Palestinians.

"The two leaders discussed ways to de-escalate the situation in Gaza, and President Obama underscored the necessity of Hamas ending rocket fire into Israel," the White House said.

"President Obama then called Prime Minister Netanyahu of Israel and received an update on the situation in Gaza and Israel. In both calls, President Obama expressed regret for the loss of Israeli and Palestinian civilian lives."

Three Israeli civilians and 108 Palestinians have been killed. Gaza officials say over half of those killed in the enclave were civilians, 27 of them children.

EGYPT SEES DEAL

Mursi has warned Netanyahu of serious consequences from a ground invasion of the kind that left over 1,400 people dead in Gaza four years ago. But he has been careful not to alienate Israel, with whom Egypt's former military rulers signed a peace treaty in 1979, or Washington, a major aid donor to Egypt.

A meeting on Tuesday in Cairo between Mursi and Ban Ki-moon, the secretary-general of the United Nations who flew in late on Monday, could shed light on the shape of any truce proposals.

Egyptian Prime Minister Hisham Kandil told Reuters: "I think we are close, but the nature of this kind of negotiation, (means) it is very difficult to predict."

Israeli media have said Israeli officials are also in Cairo to talk. And Ban is due to meet Netanyahu in Jerusalem soon.

After Hamas leader Khaled Meshaal laid out demands in Cairo that Israel take the first step in restoring calm, and warned Netanyahu that a ground war in Gaza could wreck his re-election prospects in January, a senior Israeli official denied a Hamas assertion that the prime minister had asked for a truce.

"Whoever started the war must end it," Meshaal said, referring to Israel's assassination from the air last Wednesday of Hamas's Gaza military chief, a move that followed a scaling up of rocket fire onto Israeli towns over several weeks.

An official close to Netanyahu told Reuters: "Israel is prepared and has taken steps and is ready for a ground incursion which will deal severely with the Hamas military machine.

"We would prefer to see a diplomatic solution that would guarantee the peace for Israel's population in the south. If that is possible, then a ground operation would no longer be required," he added. "If diplomacy fails, we may well have no alternative but to send in ground forces."

NETANYAHU CONSIDERS

Fortified by the ascendancy of fellow Islamists in Egypt and elsewhere, and courted by fellow Sunni Arab leaders in the Gulf, keen to draw the Palestinian group away from old ties to Shi'ite Iran, Hamas has tested its room for maneuver, as well as longer-range rockets that have reached the Tel Aviv metropolis.

As Netanyahu and his top ministers debated their next moves in a meeting that lasted past midnight, Israeli statistics showed some easing in the ferocity of the exchanges on Monday.

Israeli police counted 110 rockets, causing no casualties, of which 42 were shot down by anti-missile batteries. Israel said it had conducted 80 air strikes. Compared to over 1,000 rockets fired in total, and 1,350 air strikes, the indications were that the level of violence had fallen on Monday.

Nonetheless, blood was shed and anger seethed. Hamas said 4-year-old twin boys had died with their parents when their house in the town of Beit Lahiya was struck from the air. Neighbors said the occupants were not involved with militant groups.

Israel had no immediate comment on that attack. It says it takes extreme care to avoid civilians and accuses Hamas and other militant groups of deliberately placing Gaza's 1.7 million people in harm's way by siting rocket launchers among them.

Nonetheless, fighting Israel, whose right to exist Hamas refuses to recognize, is popular with many Palestinians and has kept the movement competitive with the secular Fatah movement of Palestinian President Mahmoud Abbas, who remains in the West Bank after losing Gaza to Hamas in a civil war five years ago.

"Hamas and the others, they're our sons and our brothers, we're fingers on the same hand," said 55-year-old Faraj al-Sawafir, whose home was blasted by Israeli forces. "They fight for us and are martyred, they take losses and we sacrifice too."

Thousands turned out on Monday to mourn four children and five women who were among 11 people killed in an Israeli air strike that flattened a three-storey home the previous day.

The bodies were wrapped in Palestinian and Hamas flags. Echoes of explosions mixed with cries of grief and defiant chants of "God is greatest!".

ISRAELI INVESTIGATION

Israel said it was investigating the strike that brought the block crashing down on the al-Dalu family, where the dead spanned four generations. Some Israeli newspapers said the house might have been targeted by mistake.

For the second straight day, Israeli missiles blasted a tower block in the city of Gaza housing international media. Two people were killed there, one of them an Islamic Jihad militant.

In scenes recalling Israel's 2008-2009 winter invasion of the coastal enclave, tanks, artillery and infantry have massed in field encampments along the sandy, fenced-off border.

Israel has also authorized the call-up of 75,000 military reservists, so far mobilizing around half that number.

Although 84 percent of Israelis support the current Gaza assault, according to a poll by Israel's Haaretz newspaper, only 30 percent want an invasion.

With the power balances of the Middle East drastically shifted by the Arab Spring during a first Obama term that began two days after Israel ended its last major Gaza offensive, the newly re-elected U.S. president faces testing choices to achieve Washington's hopes for peace and stability across the region.

In an echo of frictions over the civil war in Syria, Russia accused the United States on Monday of blocking a bid by the U.N. Security Council to condemn the escalating conflict in the Gaza Strip. Washington has generally stopped the U.N. body from putting what it sees as undue pressure on its Israeli ally.

(Writing by Alastair Macdonald; Editing by Kevin Liffey)

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