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An Israeli missile has killed two Palestinians in the Gaza Strip, bringing to four the number killed in a new Israeli military
offensive approved after 10 Israelis died in a suicide bombing.

Israeli officials said the campaign was also aimed at dealing militants in Gaza a heavy blow to guard against any claims of victory shouldPrime Minister Ariel Sharon go ahead with a planned evacuation of settlements in the seaside strip.

Palestinian gunmen, anticipating a widescale Israeli incursion into Gaza, where 7,500 Israelis live amidst 1.3 million Palestinians, took up battle positions and swore to fight to the death.

"We prepared ourselves and said farewell to our families. If they come in it will be a battle to the death," one gunman said.

In the flashpoint Rafah area in southern Gaza, an Israeli helicopter fired two missiles at a group of Palestinians on Wednesday, killing one gunman and a bystander, witnesses said.

Military sources said troops fired two missiles at two separate groups of armed Palestinians laying explosive charges.

Earlier on Tuesday, in what Israeli officials said would be a series of attacks against militants and their leaders, an Israeli helicopter punched three missiles into a house in Gaza City killing two Palestinians.

Islamic Jihad identified one of the dead as a member and the other as a passer-by. It said the target of the attack, Mohammed al-Kharoubi, a commander in its armed wing, survived. Fourteen people, including three children, were hurt.

Israel launched the Gaza City air strike hours after deciding on the new military campaign in response to Sunday's double suicide bombingin the strategic port of Ashdod.