Palestinian militant groups announced ceasefire with Israel

Palestinian militants in Gaza have announced an Egypt-brokered ceasefire with Israel, potentially pulling the two sides back from the brink of war, after the heaviest round of fighting since the last conflict in 2014.

The armed wing of Hamas, which runs Gaza, announced the truce in a joint statement with other military factions, declaring it to be a victory.

"Egypt's efforts have been able to achieve a ceasefire between the resistance and Israel,” the statement read.

"The resistance will respect this declaration as long as Israel respects it."

There was no immediate response from Israeli Prime Minister Benjamin Netanyahu, the military or the government, which had indicated earlier that it would continue strikes on Gaza.

Israel's hardline defence minister, Avigdor Lieberman, issued a statement saying he did not support stopping the air raids. However, senior Israeli diplomatic officials, speaking on condition of anonymity, hinted that an agreement may have been accepted, somewhat begrudgingly.

The announcement came just moments after a six-hour Israeli Security Cabinet meeting ended.

The cabinet had ordered the Israeli military to continue strikes in Gaza "as is necessary", but stopped short of ordering a renewed offensive. Gaza’s health ministry said on Tuesday that seven Palestinians in Gaza had been killed and 25 wounded in Israeli airstrikes since the fighting erupted on Monday evening.

Meanwhile, a barrage of rockets on Israel killed one person, a 48-year-old West Bank Palestinian man, and injured 27 Israelis, including three severely. Earlier, militants had fired an anti-tank missile at a bus near the border, severely injuring a 19-year-old soldier.

The news of a truce was met by boisterous celebrations in Gaza as thousands took to the street waving the Green Hamas flags and declaring it a victory for the resistance.

The last 24 hours had seen the most intense flare-up of fighting since the last war, sparking fears the region was tumbling back into a protracted conflict.

Shortly after funerals were held on Monday afternoon, Gaza militants began firing an intense barrage of rockets into Israel.

Israel and Palestinian militants in Gaza have fought three wars since 2008, and protests and clashes along the Gaza border since 30 March have repeatedly raised fears of a fourth.

At least 234 Palestinians in Gaza have since been killed by Israeli fire, the majority during protests and clashes. Two Israeli soldiers have been killed over the same period.