NEW : Israeli military , Palestinian militants attack near Gaza City . Israel calls Hamas ` ` a murderous terrorist . '' This occurs amid a deterioration of U.S.-brokered peace talks . `` Whoever chooses the terrorism of Hamas does not want peace . '' Hamas controls Gaza and Fatah dominates in the West Bank .
NEW : Israeli military , Palestinian militants attack near Gaza City . Israel calls Hamas ` ` a murderous terrorist . '' This occurs amid a deterioration of U.S.-brokered peace talks . Hamas controls Gaza and Fatah dominates in the West Bank .