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The UN Security Council and world leaders have called for an immediate end to the violence.
There is widespread panic and confusion on the streets of Gaza, as hospitals and emergency workers struggle to deal with the dead and wounded.
According to Palestinian medical officials, 271 people been killed and hundreds more wounded.
Most of the dead are reportedly members of the Hamas security forces, but Palestinian officials say there have also been civilian casualties. Militants in Gaza often operate and fire weapons from civilian areas.
Hamas has been in power in Gaza for the last 18 months, after winning parliamentary elections in 2006. The group has been largely shunned by Western powers for its refusal to renounce violence and recognize Israel.
Hamas leader Ismail Haniyah said that "Palestine has never seen an uglier massacre" and said Hamas would launch revenge attacks, which would include suicide bombings inside Israel.
Rocket Attacks
Israel has said the air strikes are a response to almost daily rocket and mortar attacks by Gaza militants, which have intensified after a six-month truce expired eight days ago.
The Israeli Army has said that militants have fired up to 300 rockets and mortars at Israeli targets over the past week. One man was killed and six wounded by a rocket strike in the southern Israeli town of Netivot.
Israeli Defense Minister Ehud Barak said on December 27 that "there is a time for calm and a time for fighting, and now the time has come to fight." Israeli officials have also said Hamas leaders could be targeted in the strikes.
There are fears that the violence will intensify and the humanitarian situation will worsen.
Israel has bolstered infantry troops and armor along the border with the Gaza Strip.
Humanitarian Fears
International leaders, including from the United Kingdom, the EU, and the Vatican, have all called for calm.
In a statement early on December 28, the UN Security Council called for an immediate end to the violence and urged all parties to take necessary measures to prevent a humanitarian crisis, including opening border crossings to allow food and aid to get through.
Many Gazans are reliant on food aid and medical supplies are running short.
But Israel's closest ally, the United States, has blamed Hamas to the outbreak of violence.
Speaking late on December 27, White House spokesperson Gordon Johndroe accused Hamas of breaking the ceasefire and urged Israel to avoid civilian casualties.
"Hamas must stop launching rockets into Israel. [The] United States holds Hamas responsible for breaking the ceasefire. Now the ceasefire should be restored immediately," Johndroe said.
"The United States is also very concerned about the humanitarian situation in Gaza and want all parties involved to work to get the people of Gaza the humanitarian supplies that they need."
The Arab League has scheduled a meeting on December 31 to discuss the situation.
Compiled from agency reports
By RFERL
http://www.rferl.org/content/Israeli_Air_Strikes_On_Gaza_Continue/1364354.html
Copyright (c) 2008. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036.