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Israel sought to deliver a knockout blow to Hamas in the Gaza Strip today, pounding the homes of Hamas leaders and edging troops deeper into populated urban centres.

Israeli security officials said that the move was both tactical and psychological.

“We want to send a clear message to Hamas that we can keep going as long as it takes. We will do whatever we need to protect our citizens from rocket attacks,” said a member of the Israeli security council.

The council has already voted to approve the use of reserves in Gaza, thousands of whom entered Gaza last night. Defence officials said that those units had been taking over areas cleared by the regular troops, allowing those forces to push forward toward new targets and sending a strong signal that Israel is planning on continuing its offensive.

Israeli officials said that the Government was torn on whether to continue expanding the offensive, with Ehud Barak, the Defence Minister, and Tzipi Livni, the Foreign Minister, pushing for the army to end the operation in the coming days and Ehud Olmert, the outgoing Prime Minister, arguing for an expanded offensive.

“Israel is a country that reacts vigorously when its citizens are fired up, which is a good thing. That is something that Hamas now understands and that is how we are going to react in the future, if they so much as dare fire one missile at Israel,” said Ms Livni.

Hamas, at least publicly, has vowed to continue fighting, though senior Hamas leaders in Gaza have signalled that the Israeli operation has dealt them a severe blow.

In 17 days of fighting, Israel has moved from targeted air strikes to a massive ground operation aimed at combing the Gaza Strip for Hamas rocket-launching stations. Military analysts said that troops were edging into the populated areas slowly, avoiding the numerous booby-traps that Hamas had prepared.

Israel has accused Hamas of endangering civilian populations by launching rockets from mosques and schools and using them to hide weapons. Israel also said that Hamas fighters were wearing civilian clothes and using ambulances to move around the Gaza Strip.

Since Israel began its offensive, Gaza health officials have counted nearly 900 dead, at least half of them civilians. The Israeli military said that troops had killed some 300 armed militants. Thirteen Israelis have died, three of them civilians.

German and British envoys have pressed efforts to negotiate an end to the war, even though Israel and Hamas have ignored a UN Security Council resolution calling for an immediate and durable ceasefire.

Israel’s conditions for a ceasefire include a complete stop to Hamas rocket fire and weapons smuggling from Egypt. Hamas wants Israel to open all border crossings with Gaza and implement an international border to monitor the crossings.

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