Hamas claims Gaza "victory" as Israel pulls back

By Nidal al-Mughrabi

GAZA (Reuters) - Hamas declared victory after Israeli troops pulled out of the Gaza Strip on Monday following a U.S. appeal to end days of fighting that killed more than 100 Palestinians.

Israeli Prime Minister Ehud Olmert said despite the culmination of the five-day operation, in which two Israeli soldiers were killed, Israel would take further action in the Gaza Strip until cross-border rocket fire was cut significantly.

The withdrawal came in time for a two-day visit, beginning on Tuesday, by U.S. Secretary of State Condoleezza Rice, a driving force behind peace talks between Israel and the Palestinian Authority that have so far shown little progress.

"The blood of Gaza's children has achieved victory and occupation will be removed," Hamas's Gaza leader Ismail Haniyeh said in a statement.

Hamas, which seized the Gaza Strip from Palestinian President Mahmoud Abbas's Fatah faction in June, vowed to continue firing rockets into Israel. It launched one into the main southern city of Ashkelon shortly after the troops withdrew, wounding one person.

"We are not willing to show tolerance, period. We will respond," Olmert said in broadcast remarks.

A senior Israeli official said, however, there would be a "two-day interval" for Rice's visit.

Israel had been under pressure from its allies in Washington to halt the violence after Palestinian President Mahmoud Abbas suspended U.S.-backed peace talks in protest at the bloodshed.

The Palestinian Health Ministry said 116 Palestinians were killed in the Gaza offensive. About half of them were civilians, medics say.

Many of the civilian casualties came when Israeli missiles fired by helicopters, jets and unmanned drones hit buildings and homes that the army said were being used by militants.

In an air strike on Monday night, an Israeli missile killed one militant and wounded another in the northern Gaza Strip as they were attempting to launch a rocket at Israel, militants and medics said. An Israeli army confirmed the strike.

PEACE TALKS

Speaking after the pullout, senior Palestinian negotiator Saeb Erekat said the talks, which Washington hopes can result in a statehood deal this year, would remain frozen for now.

"We are working hard to reach a full calm, a full cessation of hostilities. We want to make sure that what happened will not recur," Erekat said.

Palestinian Prime Minister Salam Fayyad said talks with Rice would focus on events in Gaza and Palestinian leaders would urge her to press Israel to end military operations there.