Militants killed near Gaza border

The Israeli military has shot and killed two Palestinian militants in the Gaza Strip.

The Israeli army says soldiers saw two armed men east of Gaza City, near the border with Israel, and fired on them.

A statement by Hamas's armed wing said that the men were killed in exchanges of fire on the outskirts of Gaza City.

Hamas seized control of Gaza on June 15 after it overran forces loyal to Palestinian Authority President and Fatah leader Mahmoud Abbas.

Gaza has been largely cut off from the outside world since then.

The territory's economy is in deep crisis and there have been reports of shortages of medicines and food.

Hamas, a militant and political group, won Palestinian elections last year, but was shunned by Israel and the West because it refused to recognise Israel and renounce violence.

Talks rejected

Also on Wednesday, Mr Abbas again rejected holding talks with Hamas.

He said that the Hamas actions, in taking over the Gaza Strip, had only helped the enemies of the Palestinian people and those who opposed the creation of a Palestinian state.

He was speaking in the Egyptian city of Alexandria, after a meeting with Egyptian President Hosni Mubarak.

Their talks were part of a series of meetings Mr Abbas is holding in the months leading up to a US-sponsored Middle East peace conference later this year.