Joy as Israeli forces rescue two hostages captive for 128 days

...but at least 67 Palestinians killed in air strikes

- Mark Reynolds

ISRAEL rescued two male hostages in a daring raid into Rafah yesterday as it launched air strikes on the southern Gazan city killing dozens - despite a host of countries urging it to lay off.

The Israeli military said Marman, 60, and Fernando Simon Louis Har, 70, were in "good medical condition" after 128 days in captivity.

But with the world watching, the Palestine Red Crescent Society claimed Rafah was already under full-scale attack, with between 50 and 100 deaths and many more injured in Israeli aerial assaults.

A spokesman for Hamas-run health ministry said at least 67 Palestinians had been killed in the the overnight bombing and this number was likely to rise.

But in spite of the rescue and raid accompanying deadly air strikes, threatened wider ground offensive into the city - where 1.5 million Palestinian refugees are holed up in desperate conditions did not yet appear to have been launched.

Israel would only say it had conducted strikes "in southern Gaza".

But terrified eyewitnesses in Rafah spoke of relentless overnight air strikes on the city's north and centre.