Palestinians say truce reached with Israel to end deadly escalation

- Palestinian leaders in Gaza agreed to a ceasefire with Israel on Monday to end a deadly two-day escalation in violence that threatened to widen into a fourth war between them since 2008.

An Israeli military spokeswoman declined to comment on the deal, but there appeared to have been no rocket fire or Israeli strikes in the hours after it was due to take effect, an AFP correspondent in Gaza said.

Israel also lifted restrictions on civilian movements in communities around the Gaza border on Monday morning.

Egypt brokered the agreement to cease hostilities from 4:30 am (local time), an official from the strip's Islamist rulers Hamas and another from its allied group Islamic Jihad said on condition of anonymity.

An Egyptian official also confirmed the deal on condition of anonymity. It came after the most serious flare-up in violence between Israel and Palestinian militants in Gaza since a 2014 war.

The escalation began Saturday with massive rocket fire from Gaza, drawing waves of Israeli retaliatory strikes, and continued throughout Sunday.

At least 23 Palestinians, including at least nine militants, were killed.

Four Israelis civilians were killed.

The flare-up came as Hamas sought further steps from Israel toward easing its blockade under a previous ceasefire brokered by Egypt and the United Nations. Israel at the same time faced pressure to restore calm and put an end to the rockets hitting communities in the country's south.

It commemorates its Memorial and Independence Days later this week and is due to host the Eurovision song contest in Tel Aviv from May 14-18, which is expected to draw thousands to Israel.

On the Gazan side, the Muslim holy month of Ramadan began Monday. Palestinian officials in Gaza accused Israel of not taking steps to ease its blockade as promised under previous ceasefire deals.

The Islamic Jihad official said the new truce agreement was again based on Israel easing its blockade.

Among the steps, he said, were the relaxing of limits on fishing and improvements in Gaza's electricity and fuel situation.

Israeli opposition politicians -- and at least one from Prime Minister Benjamin Netanyahu's own party -- criticised the agreement.

Former military chief Benny Gantz, who challenged Netanyahu in Israel's April 9 general elections, called it "another capitulation to blackmail by Hamas and terrorist organisations."