Occupied Jerusalem: Air strikes and raids into Gaza have been halted in response to a fall in rocket fire from Palestine, Israel’s defense officials said on Monday.

Israeli Prime Minister Ehud Olmert has instructed the army to hold offensive attacks in an attempt to facilitate mediation talks led by Egypt, an official said.

However it is not clear if Hamas and Israel have called a truce or not.

Hamas has said that no formal ceasefire had been reached but talks were underway to work out an agreement.

Israel's army has not carried out airstrikes nor land operations in the Gaza Strip since Wednesday, as Palestinian rocket fire has fallen considerably.