"Gaza should not become a second Lebanon," said Immigrant Absorption Minister Zeev Boim, reiterating a phrase used by Israeli leaders recently to mean the territory should not become a bastion of militant resistance.
"Apparently we will not have any other choice but to launch an expanded operation, like Defensive Shield, in order to destroy the stockpiles of weapons and to hit the terrorist organisations," said Boim, a close ally of Prime Minister Ehud Olmert.
"We have to completely stop the rocket fire and not to allow the terrorists to smuggle modern arms that would upset the balance of power between the forces," Boim told public radio.
Israel has already been pounding Gaza for nearly four months killing more than 250 Palestinians in the territory since June 28. Nevertheless, militants have continued to fire rockets into the Jewish state and, according to Israel, have accumulated vast stockpiles of arms via tunnels dug to Egyptian territory.
The Israeli military overnight fired a missile in the northern Gaza Strip which according to witnesses destroyed an electricity generator that served a large part of the town of Beit Hanun, depriving it of power.
The military said the raid was aimed at militants as they prepared to fire rockets at Israel.
In the occupied West Bank, an 18-year-old militant from the Islamic Jihad group and another teenager, were killed near the northern city of Jenin.
On Monday, the armed wing of Hamas declared it had the "means and arms necessary to confront the Zionist enemy with all our force if it proceeds (further) with military operations in the Gaza Strip."
"If the enemy decides to go towards a large confrontation with Hamas, we will be up to this challenge and are totally ready to resist. We have finished preparations to teach the Zionist enemy a lesson it will not forget," the Ezzedine al-Qassam Brigades said.
The group rejected Israel's claims that vast stores of smuggled arms have been amassed, accusing the Jewish state of "using such allegations to justify criminal operations it seems to have decided to wage in the Gaza Strip."
Palestinian prime minister Ismail Haniya, who heads the Hamas-led government, promised again on Tuesday not to bow to foreign pressure.
"The Americans don't want the Palestinian people to form a government based on national consensus but based on their views and their conditions," Haniya told a gathering of business leaders in Gaza City.
"Foreign diktats will not weaken our determination," he added.

Copyright AFP (Agence France-Presse), 2006