Palestinian militants in Gaza fired six rockets into Israel yesterday, two of them crashing in the southern town of Sderot.
The armed wing of Hamas claimed responsibility for the rocket attacks, which did not cause any injuries or damage.
Israeli soldiers shot and critically wounded two Hamas gunmen yesterday, Hamas officials and medics said.
The confrontation followed a series of Israeli air strikes overnight against Hamas targets after Israeli Prime Minister Ehud Olmert pledged unlimited military action aimed at halting rocket fire from Gaza.
Hamas said soldiers aimed artillery fire at gunmen who had shot mortars toward Israel, in southern Gaza, before dawn. Medics said both were taken to hospital where they were listed in critical condition.
An Israeli military spokeswoman confirmed Palestinians had fired mortars from Gaza but not that soldiers had opened fire in return.
"We don't know of any artillery or tank fire" by soldiers in the area, the spokeswoman said.
Israel has pounded targets of the Islamist movement for nearly two weeks in response to a sharp increase of rocket fire from the territory. The air raids have killed 13 civilians and 33 militants.
But the strikes have failed to halt rocket fire -- nearly 250 projectiles have been launched into Israel since May 15, killing two civilians, wounding 20 and sending hundreds fleeing from Sderot that has borne the brunt of the fire.
Hamas rejected a bid by Palestinian President Mahmoud Abbas on Sunday to call a new truce to end the cycle of bloodshed.
"We will not surrender, we will not raise the white flag," said Ayman Taha, a spokesman for Hamas.
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