'Iron fist' warning as troops advance into Gaza suburbs

ISRAELI troops advanced into Gaza suburbs for the first time today, hours after Prime Minister Ehud Olmert warned Islamic militants that they face an "iron fist" unless they agree to terms for an end to the war.

Hamas showed no signs of wavering, however, with its leader, Ismail Haniyeh, saying the militants were "closer to victory".

Israeli forces, backed by artillery and attack helicopters, moved into neighbourhoods east and south of Gaza City, as Israeli gunboats shelled the coast from the west.

The fighting comes as UN Secretary-General Ban Ki-moon said today he is to press for Israel and Hamas to immediately stop fighting and allow humanitarian aid into the devastated Palestinian territory.

He said: "To both sides, I say, 'Just stop, now'. Too many people have died."

Mr Olmert said Israel would end military operations only if Hamas stops rocketing Israel. "Anything else will be met with the Israeli people's iron fist," he added.