Six people have been killed in an Israeli air attack on a Palestinian militant base in the southern Gaza Strip.
The air strike hit a car leaving the camp in Rafah where weapons training had apparently been taking place.
A local militant commander and his daughter were among the dead. It was the deadliest Israeli air raid in five months.
Meanwhile, the US Secretary of State, Condoleezza Rice, says the White House is suspending $411m in aid to the Hamas-led Palestinian Authority.
Washington, which regards Hamas as a terrorist organisation, says it will re-direct some of the money to charities in the UN's Relief Agency so ordinary Palestinians will not suffer.
In a written statement, Dr Rice said that because Hamas had failed to accept the principles of non-violence, recognition of Israel and respect for previous agreements, the US government would be suspending assistance to the Palestinian government and cabinet ministries.
Palestinian leaders have strongly criticised the moves. The Prime Minister, Ismail Haniyeh, called the decisions hasty and unjust.
He said Palestinians were being punished for their democratic choice and warned that such moves would not serve the interests of the Middle East.
A Hamas spokesman, Khazi Hamad, said the decision of the EU and the American's to cut off aid would not change its stance.
