An Israeli airstrike on northern Gaza has killed two Palestinians, hours after the Israeli army released video of soldiers operating in the Gaza Strip.

Palestinian paramedics evacuated dead and wounded from the Jabalya refugee camp and took them to the local hospital, where a woman who arrived at the morgue fainted at the sight of the bodies.

Earlier, Palestinian President Mahmoud Abbas suspended peace negotiations with Israel, demanding an end to the Gaza offensive that has killed more than 100 Palestinians, many of them civilians.

The United Nations Security Council has urged Israel and Palestinian militants to stop all violence in Gaza.

And UN Secretary-General Ban Ki-moon condemned what he called Israel's "excessive" use of force in the region.

But Ehud Barak, the Jewish state's defence minister, responded by warning of a possible escalation of military action in the Gaza Strip.

He said: "We will continue our action with all our strength and we need to prepare for escalation, because a broad ground operation is real and tangible."

Israeli troops, backed by helicopters, pushed deep into Gaza on Wednesday after Palestinian militants fired a rocket across the border, killing an Israeli civilian.

At least 26 more rockets have been launched by the Palestinians since the invasion, the UN said, but the Israelis have been retaliating with missile strikes of their own.

But the Security Council issued a statement saying members were "deeply concerned about the loss of civilian life in southern Israel and Gaza" and condemning the escalation of violence.

Ban Ki-moon told an emergency session of the council: "While recognizing Israel's right to defend itself, I condemn the disproportionate and excessive use of force that has killed and injured so many civilians, including children."

The Pope has called for an end to the conflict in a statement.

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