What hope for peace?
Updated on 05 January 2009
Hamas warns that its fighters are waiting "in every street and every house" in Gaza, while Israel vows its assault will continue until its territory is safe from attack.
From Tony Blair to the French President Nicolas Sarkozy, there has been no shortage of international envoys trying to broker a ceasefire.
But so far there has been no concerted line, The United States is insisting Hamas is to blame for the violence, while Britain has demanded an immediate ceasefire.
Alex Thomson has been talking with some of the diplomats in Israel to find out if any of them are hopeful of success:
Analysis: Jonathan Rugman
Reports from Gaza City say major clashes are now raging between Israeli forces and Hamas militants. Witnesses talk of large explosions and heavy exchanges of fire.
This as Israel vows its offensive will continue and Hamas rules out a ceasefire until Israeli troops withdraw.
The 40km-long territory has effectively been divided in two by Israeli troops. Gaza City is now surrounded on three sides, while Israeli forces have also been seen as far south as Khan Yunis and Rafah.
Reports from Israel say at least 20 rockets were fired from Gaza today, landing near Ashkelon, Ashdod and Sderot, although no-one is thought to have been hurt.
Western journalists are not allowed into Gaza, but our diplomatic correspondent Jonathan Rugman is on the Israel-Gaza border.
His report begins with images of three young children killed today, whose dead bodies were filmed at the hospital where doctors tried to keep them alive.
