By Nidal al-Mughrabi and Maayan Lubell GAZA/JERUSALEM (Reuters) - Israel fired shells into the Gaza Strip and militants kept up rocket fire into the Jewish state on Sunday with no sign of a diplomatic breakthrough to end the worst fighting between Israel and Hamas in two years. Israeli tank shells killed one Palestinian and hit houses in the northern Gaza district of Shejaia, where residents called local radio stations pleading for evacuation. Explosions rocked through Gaza overnight and shells fired by Israeli naval forces lit up the sky. In Israel, sirens sounded in towns near Gaza, warning of approaching rockets.
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