9:50 p.m. Israel has fired several missiles into southern Gaza near Rafah.
9:45 p.m. Hamas official Osama al-Muzaini says there has been no progress in talks with Israel over the release of kidnapped Israeli soldier Gilad Shalit. Hamas has demanded the freeing of 1400 Palestinian inmates, including 450 long-term prisoners, for Shalid, but Israel has agreed to only 71 of the 450.
4:15 p.m. Hamas political director Khaled Meshaal has restated the organisation's position on an Israel-Gaza settlement: ""We will not accept a truce unless it was in return for lifting the siege, opening the border crossings and acceleration of the reconstruction of Gaza."
Translation: unless Israel makes unexpected concessions via Amos Gilad in Cairo today, the Hamas delegation returning to Cairo on Saturday will reject any proposed deal. Whether that is effectively the end of the Cairo-based negotiations, or whether they resume after the Israeli elections on Tuesday, remains to be seen.
3 p.m. The United Nations Relief and Works Agency has halted operations after the second seizure of its supplies by Hamas this week.
2:15 p.m. Egypt continues to ratchet up pressure on Hamas and Gaza at the border. The Jordanian Secretary of the Nurses Union, Salman Al-Masa’id, has been arrested and held without charge. Al-Masa'id was part of a Jordanian delegation helping with medical care in Gaza; his "crime" was to remain when the rest of the delegation left earlier this week.
12:30 p.m. An extraordinary development over Israel's "permission" for the Palestinian Authority to bring $43 million into Gaza to pay its employees so they will not show up for their jobs, thus hindering Hamas. US Secretary of State Hillary Clinton has hailed Israeli Prime Minister Ehud Olmert as "courageous" for allowing the movement of money.
Remember that $43 million is only part of $60 million the PA wished to transfer, that the PA is supposedly the Palestinian faction being backed by Israel and the US to take over in Gaza, and that Israel has made no move to support the PA's announcement of $600 million in reconstruction aid for Gaza. Despite this, Olmert faced opposition from both Foreign Minister Tzipi Livni and Defense Minister Ehud Barak, who argued the money would find its way to Hamas.
11:20 a.m. A prosecutor's office in Ankara has launched an investigation as to whether Israel's invasion of Gaza involves "genocide, torture and crimes against humanity". The enquiry was started after a complaint by an Islamic human rights group naming Israeli officials, including Prime Minister Ehud Olmert, Foreign Minister Tzipi Livni, and Defense Minister Ehud Barak.
9 a.m. Diplomatic Development to Watch. A day after a Hamas delegation left Egypt without agreement on proposals for an Israel-Gaza settlement, the chief Israeli negotiator, Amos Gilad, is in Cairo.
7:45 a.m. Two rockets launched from Gaza have hit southern Israel.
7:40 a.m. Irony of the Day. The Israeli blockade of Gaza, supposedly to stem violent attacks, has halted a United Nations programme promoting non-violence amongst Gazan youth. The programme cannot get the paper it needs for leaflets.
UN official John Ging said, "I'm being obstructed in printing out the human rights curriculum that we're all so proud of having developed here and that is more important now than ever before to get on with the teaching of the responsibilities that go with human rights and to focus on making sure that these kids grow up with the right values."
7:30 a.m. A poll of almost 1200 Palestinians increased a sharp rise in support for Hamas and a decline in support for Fatah and the Palestinian Authority after the Gaza conflict. We've posted a summary in a separate entry.
Morning Update (6:45 a.m. GMT; 8:45 a.m. Israel/Palestine): Israel has released 10 activists and journalists who were aboard a Lebanese ship intercepted yesterday as it tried to deliver aid to Gaza. The whereabouts of others amongst the 18 on the ship is still unknown. An Al Jazeera journalist says, "[The Israelis] blinded our eyes, bounded our hands, kept us in uncomfortable conditions for one hour ... they also told us not to communicate with each other in Arabic."