Gaza health official Dr. Moaiya Hassanain said at least 70 people were killed or died of wounds throughout Gaza on Thursday.

Israeli police said 20 rockets hit southern Israel, injuring 10 people. Five of the wounded were in a car that was struck in the city of Beersheba.

Olmert's office said U.S. Secretary of State Condoleezza Rice telephoned him on Thursday, and he told her Israel hoped Egyptian mediators could help bring about a cease-fire and an end to weapons smuggling. The statement said Rice, who leaves office on Jan. 20, told Olmert that the U.S. was willing to help resolve the smuggling issue.

The U.S. administration was racing in its final days to negotiate a last-minute deal on American support for mediation efforts under which the U.S. would provide technical support and expertise to prevent Hamas from re-arming, said U.S. and Israeli diplomats.

It was not immediately clear if members of President-elect Barack Obama's or Secretary of State-designate Hillary Rodham Clinton transition teams were being advised of the talks, which could lead to a prominent and ongoing U.S. role in the truce.

The diplomats spoke on condition of anonymity due to the sensitivity of the negotiations.

Israel wants a total end to Hamas' rocket launches into Israel and an arms embargo on Gaza's militant rulers. Hamas has demanded an immediate Israeli withdrawal from Gaza and the opening of blockaded border crossings.

"These are our demands and we don't accept any political movement that does not accept them," the movement's top political leader, Khaled Mashaal, said in a televised address from his headquarters in the Syrian capital, Damascus.

U.N. chief Ban said Israel was preparing to make a decision soon on whether to accept a cease-fire.