Israel pulled its ground troops out of northern Gaza today after an offensive against Palestinian rocket salvos that has left more than 100 people dead.

But despite ordering soldiers out of the rogue territory, run by Islamist terror group Hamas, Prime Minister Ehud Olmert vowed to continue its deadly bombing raids.

Five militants were killed in Israeli air strikes overnight, while several other Palestinians were found dead as Israeli forces withdrew.

Israel said the operation was launched to defend itself against rocket attack.

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Medical sources say at least 114 Palestinians have been killed since Wednesday, when Israel intensified its campaign in Gaza.

Three Israelis have died - a civilian killed by a rocket on Wednesday, and two soldiers since.

There has been widespread international alarm at the scale of the Israeli action and West Bank-based Palestinian President Mahmoud Abbas has formally suspended contacts with Israel in protest.

He has even donated his blood to help victims in Gaza - a highly symbolic move after Hamas seized control of the territory from his ruling party by force last June.

But today Israeli armoured vehicles left the Jabaliya refugee camp in northern Gaza, the scene of some of the bloodiest ground fighting.

Israeli Deputy Prime Minister Haim Ramon told Army Radio: "This operation has run its course. The main goal of the Israeli government is to end the firing [of rockets] at targets in the south. "There were dozens of deaths among the Hamas terrorists - this is certainly deterrence."

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