Israel vows to fight Palestinians until end of terror

Israel has shown little reprieve in the three-week offensive, launched with the twin aims of retrieving a corporal abducted by Hamas militants and stopping rocket fire.

Tanks and troops are in the northern town of Beit Hanun conducting what is their deepest Gaza incursion since withdrawing from the impoverished territory barely 10 months ago, closing the doors on a 38-year occupation.

Yet "Operation Summer Rain" has left at least 87 Palestinians and one Israeli soldier dead since July 5.

Israel opened up a second front after Hezbollah captured another two soldiers last week and has pounded Lebanon with air strikes for six days, killing more than 200 people and seeing world leaders scramble to head off all-out war.

Yet Olmert vowed no let-up in Israel's deadly offensives against either Hamas or Hezbollah, addressing himself to MPs in parliament.

"We will fight the Palestinians without fail until terrorism stops, until Corporal Gilad Shalit is returned safe and sound, and Qassam rocket fire ceases," he vowed.

"We will not cease our operations. In both cases, in Lebanon and in the Gaza Strip, this is an act of self-defence, because the nation is at a moment of truth," added the premier, who is facing the biggest test of his leadership.