"If anyone in Gaza has illusions that extending the range of rocket fire will bring our operations to an end they are sorely mistaken," Olmert told his weekly cabinet meeting.

Israeli troops have stepped up strikes against Gaza since Wednesday following the death of an Israeli civilian who was killed by a Qassam rocket in the southern Israeli town of Sderot.

A total of 65 Palestinians were killed while 320 others wounded on Saturday in a daylong large-scale military ground operation into northern Gaza Strip.

(Xinhua News Agency March 3, 2008)