UN chief Ban Ki-moon: Gaza situation 'on knife-edge'

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, the BBC reported.

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.

"The deteriorating situation is leading to a downward spiral which could quickly get out of control," Mr Ban said.

"The risk of violence expanding further still is real."

He demanded that Hamas militants stop firing rockets and also urged the Israeli government to exercise restraint and respect international obligations to protect civilians.

The UN Security Council is due to meet for emergency talks on the crisis later on Thursday.

Israeli PM Benjamin Netanyahu earlier vowed to "further intensify attacks on Hamas" in Gaza, saying the militants would "pay a heavy price" for their rocket attacks.

Israel says its targets have been militant fighters and facilities including rocket launchers, weapons stores, tunnels and command centres.