More violence amid Gaza pullout

Israeli tanks were seen leaving Gaza City late on Wednesday

Israeli forces have pulled out of Gaza City after two days of clashes with Palestinian militants in the Zeitoun neighbourhood.

The move came after a deal was agreed for militants to hand over the remains of six Israeli soldiers killed when their vehicle was blown up on Tuesday.

The Israeli military later confirmed they had received the soldiers' remains - a condition for the pull-out.

But violence continued overnight in Rafah in the southern Gaza Strip.

In pictures: Gaza violence

Witnesses said seven Palestinians were killed in an Israeli air strike on the Rafah refugee camp.

The Israeli army says that the dead were among a group of people who were preparing to plant explosive devices.

Prior to this attack, at least 14 Palestinians had been killed and more than 170 wounded since the Israelis began their incursion on Tuesday morning.

The Israeli air strike came hours after a bomb attack on an Israeli armoured vehicle near Rafah left five soldiers dead.

Powerful blast

According to Israeli media reports, the second personnel carrier was hit by a huge explosion on Wednesday as it moved in open ground between the Rafah refugee camp and the Egyptian border.

The carrier, which was packed with explosives used to destroy smuggling tunnels, was part of a military convoy travelling on the border road.

DEATH TOLL FROM LATEST VIOLENCE 13 May - Seven Palestinians reported dead in Israeli air strike on Rafah refugee camp 12 May - Five Israeli soldiers killed by a rocket fired by Palestinian gunmen near Rafah 11-12 May - Fourteen Palestinians killed during Israeli incursion in Gaza City 11 May - Six Israeli soldiers killed by an anti-tank bomb in Gaza city

The blast was so powerful that the bodies of the soldiers inside were scattered over a wide area.

Israeli military sources said tanks and troops had pushed into the camp in a bid to recover the remains.

The Islamic Jihad militant group claimed responsibility for the attack on the Israeli personnel carrier.

Ambulances

Throughout Wednesday, troops demolished buildings and burst into homes in the densely populated Zeitoun quarter, backed up by snipers on rooftops and Apache helicopters hovering overhead.

Navy gunboats shelled the coast and opened fire on an area near Palestinian leader Yasser Arafat's old compound.

Israelis have lost 11 soldiers after bomb attacks on two tanks

However, by late evening Israeli tanks were seen pulling out of the area.

The BBC's Alan Johnston in Gaza City said the withdrawal prompted people to pour out of their homes to look at the damage left by the army.

He said there were also many Palestinian fighters, some of them still wearing hoods and carrying machineguns, on the streets.

Ambulances were also sent to help the many who had been cooped up in their homes for the past few days.

The attacks were the worst blows to Israel's army since November 2002 when nine soldiers and three settlers were killed by gunmen in the West Bank city of Hebron.

The remains of the six Israeli soldiers killed in Gaza City were initially handed over to Egyptian mediators.

They were later passed on to the Israelis at the Erez border crossing.