Heavy fighting in Gaza as Israel shuns calls for truce

The heaviest fighting of Israel's war on Hamas raged in Gaza City early today as the Israeli government parried appeals to stop the death toll from mounting further.

French President Nicolas Sarkozy led new calls to halt the conflict which doctors say has left at least 555 Palestinians dead. But Israeli ministers insisted the offensive aimed at halting militant rocket attacks will continue.

With helicopters firing heavy machine guns from above, Israeli tanks shelled the dense Shejaiya district of eastern Gaza City, residents said. Flares lit the night as blasts rocked the area.

Israeli jets also bombed the abandoned Hamas security complex in the city centre, leaving it ablaze.

Hamas said it fired missiles at seven tanks in Shejaiya and killed 10 Israeli soldiers. Arabic news channels Al-Arabiya and Al-Jazeera said three or four Israeli soldiers were killed and about 30 wounded.

The Israeli military confirmed there had been heavy fighting but made no comment on casualties.

At least 13 children were among 60 bodies taken to Gaza hospitals yesterday, medics said. Almost 100 children are among the dead since the Israeli air raids began on December 27, emergency services said.

More than 2,700 people have been wounded, and the International Red Cross said people were dying because ambulances could not get to them.

As Israel intensified "Operation Cast Lead," Foreign Minister Tzipi Livni rejected European calls for an immediate ceasefire.