Hamas mortar kills 1st Israeli in renewed Gaza conflict

Israel resumed its heavy bombardment of Gaza on Tuesday and warned that Hamas would "pay the price" after the Islamic militant group rejected an Egyptian truce plan and instead unleashed more rocket barrages at the Jewish state.

Late Tuesday, the military urged tens of thousands of residents of northern and eastern Gaza to leave their homes by Wednesday morning, presumable a prelude to air strikes there.

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Rocket fire from Gaza killed an Israeli man Tuesday, the first Israeli fatality in eight days of fighting.

Police spokesman MickyRosenfeldsaid that theman was delivering food to soldiers Tuesday at theErezborder crossing with Gaza when he was struck by a mortar.

Almost 200 Palestinians have been killed as a result of Israel'sstrikes on Gaza since Israel launched the campaign over a week ago in retaliation forHamas rocket firetargeting its citizens the deadliestIsrael-Hamasconfrontation in just over five years.

The latest round of fighting began after three Israeli teenagers were abducted and killed in the West Bank last month. Soon after their bodies were found, a Palestinian teenager was abducted and also killed in what Israeli security officials said was a revenge attack.

Three Israelis are being detained in connection with the Palestinian teen's death, but no suspects have been arrested in the case of the Israeli teens.

Hamas militants have fired more than 1,100 rockets at Israel in the current round offighting. No Israelis were killed in the attacks until Tuesday - mostlyowing to Israel's Iron Dome missile defence system.

Rosenfeldsaid at least 15 Israelis, including several children, have been injured by the Palestinian rocket fire since the fighting began.

Hamas rejects Egyptian truce

An Egyptian truce proposal for the conflict in Gaza quickly unravelled Tuesday, after the Islamic militant group Hamas rejected the plan, and insteadunleashed more rocket barrages at the Jewish state.Israel responded with more than a dozen airstrikes.

In an evening address aired live on TV, Prime Minister Benjamin Netanyahu said that after Hamas' rejection of the truce, Israel had "no choice" but to respond more forcefully.

"Hamas chose to continue fighting and will pay the price for that decision," he said. "When there is no ceasefire, our answer is fire."

The speedy resumption of violence, less than a day after Egypt presented its ceasefire plan, illustrated that it will be harder this time than in the past to negotiate an end toIsrael-Hamasfighting.

A key difference to a previous truce in 2012 is thatHamasdoes not trust the current rulers of Egypt who deposed aHamas-friendlygovernment in Cairo a year ago.

Israel had agreed to the Egyptian plan, proposed late Monday. Under it, a 12-hour period ofde-escalationwas to begin at mid-morning Tuesday. Once both sides agree to halt hostilities, they would negotiate the terms of a longer-term truce.

Gaza militants responded by firing dozens of rockets after the proposed start of thede-escalation, some of them reaching deep into Israel, though not causing injuries. Israel, which had warned it would strike Gaza harder than before ifHamasdid not halt hostilities, held its fire for several hours, but resumed air strikes by mid-afternoon Tuesday.

After the renewed rocket fire from Gaza on Tuesday,Netanyahuand Defence MinisterMosheYaalon"directed the military to act with intensity against terror targets in Gaza," said an Israeli official who spoke on condition of anonymity because he was not authorized to discuss the decision with the media.

Hamasseeks blockade easing

Since the outbreak of cross-border fighting on July 8, more than 190 Palestinians have been killed in hundreds of Israeli airstrikes and millions of Israelis have been exposed to rocket fire. The current round of violence was the third in just over five years. The previous one, in 2012, eventually ended with the help of Egypt, at the time seen as a trusted broker byHamas.

ButHamasdistrusts Egypt's current rulers, who have tightened the border blockade on Gaza, including curtailing travel in and out of the territory. An easing of the blockade of the coastal strip is key to the survival ofHamas.

Hamas officials on Tuesday rejected the Egyptian plan as is, noting they weren't consulted by Cairo. Some portrayed the truce offer as an ultimatum presented to Hamas by Israel and Egypt.

The officials, includingOsamaHamdan, a senior aide to topHamasleaderKhaledMashaal, said the Egyptian plan offered no tangible achievements, particularly on easing a border blockade of the coastal strip, which has been enforced by Israel and Egypt for the past seven years.

Hamdansaid the movement needs detailed assurances that Gaza's borders will be opened, particularly theRafahcrossing between Gaza and Egypt, the territory's main gate to the world.

Hamasalso wants to be recognized by Egypt as a partner in any truce efforts. "We did not receive any official draft of this Egyptian proposal," saidSamiAbuZuhri, a seniorHamasofficial in Gaza. He said the Egyptian plan, as is, is "not acceptable."

Hamasofficials are weary of promises by Egypt and Israel to ease the border blockade. Such promises were also part of a truce in 2012, but were not fully implemented as the strip remained under blockade.

Israel mulls ground offensive

Before the outbreak of the latest round of fighting, the militant group found itself in a serious financial crisis because the Egyptian closure had prevented cash and goods from coming into the strip through hundreds of smuggling tunnels under the Gaza-Egypt border.

In response to the Egyptian truce plan, Gaza militants fired some 50 rockets at Israel on Tuesday,

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The Israeli military said several rockets reached deep into Israel, including near the northern port city of Haifa. Sirens also went off in the towns ofHaderaandZichronYaakov, more than 100kilometres north of Gaza.

The military wing ofHamas, which has been responsible for most of the hundreds of rockets launched at Israel in the past week, said the Egyptian plan "wasn't worth the ink it was written with."

As fighting resumed, the Israeli military faced difficult choices. It has warned in the past that it might launch a ground offensive in Gaza and has amassed thousands of troops on Gaza's border.

However, entering Gaza would likely drive up casualties on both sides. In the past, Israel has shied away from ground operations for fear of getting entangled in the densely populated territory of 1.7 million.

Meanwhile on Tuesday, Canada condemnedHamas'srejection of Egypt's proposed truce.

"Canada condemnsHamasfor its terrorist attacks on Israeli citizens, and its use of human shields," tweeted Jason MacDonald, Prime Minister Stephen Harper's director of communications.

In Vienna, U.S. Secretary of State John Kerry blastedHamasfor firing rockets after the proposed ceasefire was to have taken effect.

"I cannot condemn strongly enough the actions ofHamas," Kerry told reporters. In contrast, he praised Egypt's intervention and Israel's acceptance of the deal.

Kerry said the U.S. would continue pushing for a ceasefirebecause of the potential for the violence escalating even further.