Palestinian negotiators placed the blame for the lack of progress in the talks on the Israelis.
"The Israeli delegation  is still trying to impose (upon us) what they want, and this would be  impossible for us to accept as Palestinians," said Azzam Al Ahmad, head  of the Palestinian negotiators.
The Palestinians  introduced their latest position to Egyptian and Israeli negotiators on  Tuesday, and are awaiting a response, Al Ahmad said.
By late Tuesday, the  armed wing of Hamas -- the Qassam Brigades -- said on its website that  it had fired 29 rockets into Israel in 20 minutes.
The Israel Defense  Forces, in response, launched airstrikes and ordered bomb shelters open  within a 40- to 80-kilometer range of Gaza.
At least three people,  including one infant, have been killed, and 52 people have been injured  since the breakdown of the ceasefire, according to the Health Ministry  in Gaza.
As rocket attacks and  airstrikes resumed, one interpretation of the Israelis leaving Cairo was  that they had given up on negotiations. Another Palestinian leader,  Izzat Risheq, looked at it another way, saying the Israelis took the  newest proposal home with them to share with their government.
"The chances of an agreement are very slim, and the situation is very difficult," he said.
In the talks, Israel was  calling for Gaza to be demilitarized, demanding that Hamas, which  controls the territory, and other militant groups lay down their arms.
Risheq said Monday that the group's weapons were "for self-defense" against Israel.
"But when we have our  own Palestinian state with its own national army to protect its  citizens, there will be no need for any party to carry any kind of  weapons," he said.
Palestinians say  Israel's blockade is throttling the economy of the small, impoverished  strip of land and the lives of its inhabitants.
Among their demands are the rebuilding and reopening of Gaza's airport and the establishment of a seaport.
But Israeli authorities  -- who retain control of Gaza's airspace, Mediterranean waters and their  shared border -- say releasing their grip on what goes into and out of  the territory isn't feasible while Hamas and other groups are still  building up their arsenals of weapons.
Cease-fire unravels
The rocket fire came  only hours after the ceasefire was extended until the end of the day, as  Palestinian and Israeli negotiators, struggling to reach a more lasting  agreement, reported little progress.
Israeli Prime Minister  Benjamin Netanyahu ordered the IDF to respond to the rockets, a senior  Israeli official told CNN. An IDF statement shortly afterward said  strikes were being carried out against targets in Gaza.
Nine Palestinians,  including three children, were wounded in an Israeli airstrike in Rafah,  Ashraf el-Qedra, spokesman for the Palestinian Health Ministry in Gaza,  told CNN.
Al Aqsa TV reported airstrikes in northern and central Gaza, as well.
The United States  condemned the renewed rocket attacks, with a State Department official  reiterating the U.S. position that Israel has a right to defend itself  against such attacks.
"We hope that the  parties can reach an agreement on a sustainable ceasefire, or if  necessary, agree to yet another extension of their temporary ceasefire  so they can continue in conversations," Marie Harf, deputy spokeswoman,  said.
"But as of right now,  today's developments, we are very concerned about and it is our  understanding that ... the ceasefire has broken down."
Hamas blames Israel
A thick plume of smoke could be seen rising from a building in southern Gaza apparently hit by an Israeli airstrike.
A CNN team on the ground  also saw earlier what appeared to be three rockets being fired from  Gaza into Israel, leaving smoke trails in the sky.
Shortly before the  rockets were launched, Hamas spokesman Fawzi Barhoum said in an e-mailed  statement to CNN: "If Netanyahu does not understand our message and  people's demands in Gaza through political language, we know a way to  make him understand."
A banner on the Hamas-run Al-Aqsa TV blamed Israel for violating the truce.
The conflict, which began in early July, has killed more than 2,000 Palestinians, leaving entire Gaza neighborhoods in rubble.
The violence has killed 67 people on the Israeli side, with militants in Gaza firing roughly 3,500 rockets toward Israel.






 
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