DHAKA: The situation in Gaza "is on a knife-edge", UN Secretary General Ban Ki-moon has said, urging Israel and Palestinian militants to end hostilities.

Mr Ban warned that the region "cannot afford another full-blown war".

His comments come after Israel said Hamas had fired dozens of rockets at Israeli cities on Wednesday night, following Israeli air strikes in Gaza.

More than 60 Palestinians are reported to have died since Tuesday in Israel air strikes against militants.

Gaza medical officials say half of the casualties were civilians, including women and children.

Seven Palestinians were killed in an air raid on two houses near the southern city of Khan Younis early on Thursday.

**Israel to intensify Gaza attacks

BDST: 0910 HRS, JUL 10, 2014