Israel bombs Gaza border tunnel

No casualties were reported in the early morning attacks, part of Israel's month-long assault on Gaza to recover a captured soldier and end cross-border rocket attacks.

At least 150 Palestinians, around half of them gunmen, have been killed in the offensive.

An army spokeswoman said one of the targets overnight was a factory in Gaza City used by the Islamic militant group Hamas, which controls the Palestinian government, to manufacture and store arms.

The army said it also bombed a tunnel along the Israeli-Egyptian border near Rafah.

Israel has rejected demands for a prisoner exchange by the gunmen who captured Corporal Gilad Shalit by tunneling under the border on June 25. Some of the gunmen came from Hamas.

Meanwhile, 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.

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.