Israel has launched a ground offensive into the Gaza Strip in an effort to step up pressure on Palestinian militants to release an abducted soldier.
Tanks and infantry, backed by assault helicopters and artillery, have set up a strategic observation post at a disused airport outside the southern town of Rafah.
Threatening 'extreme steps' if Corporal Gilad Shalit was not freed, Israeli Prime Minister Ehud Olmert said the operation would continue over the coming days.
Corporal Shalit, 19, was abducted on Sunday in a cross-border raid from the Gaza Strip by three factions, including the armed wing of Hamas.
The last time Palestinian militants kidnapped a soldier was in 1994. He was killed during a rescue attempt.
Reports that two Israeli settlers have also been abducted have not been confirmed.
Launching the offensive this morning, Israeli aircraft struck at several bridges in what the army said was an attempt to stop militants moving their captive.
A helicopter attack on Gaza's only power plant has cut off electricity to much of the impoverished coastal territory, home to 1.4 million Palestinians.
Palestinian President Mahmoud Abbas has called the bombardment of civilian infrastructure 'a crime against humanity'.
International powers trying to revive stalled middle-east peace talks have been dismayed by the turn of events sparked by the cross-border raid.
The US has said Israel has the right to defend its citizens but should ensure innocent Palestinians were not harmed during rescue attempts.
The EU's external relations commissioner, Benita Ferrero-Waldner, has called on those holding the Israeli soldier to free him.
She also urged Israel to 'act with prudence' to allow diplomatic efforts to secure his release to succeed.
Israeli aircraft fly over Syria
Israeli aircraft have flown over the presidential palace of Syrian President Bashar al-Assad in what the Israeli military has described as a response to the 'support and protection' Syria gives Hamas.
It is understood four planes carried out the overflights at low altitude, creating several sonic booms.
Syrian officials described the move as a 'provocative action' and said that Syrian air defences had 'forced the aircraft to leave'.
Israel has accused Damascus-based Hamas leader Khaled Meshaal of being responsible for the kidnapping.
