GAZA, Jan 7 (Reuters) - Israel and Hamas studied an Egyptian proposal for a ceasefire in the Gaza Strip on Wednesday that won immediate backing from the United States and Europe, hours after Israeli shells killed 42 Palestinians at a U.N. school.
However, Israeli officials also said ministers would discuss a major escalation of their 12-day-old offensive that would push troops deep inside Gaza's cities and refugee camps in their bid to end rocket salvoes into Israel by Islamist militants.
Sarkozy, French president, winding up a two-day tour of the Middle East, said: "I am confident the Israeli authorities' reaction will make it possible to consider putting an end to the operation in
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