A Palestinian man looks at a destroyed house after an Israeli air strike in Gaza City, Nov 19, 2012. Hostilities between Islamist militants and Israel entered a sixth day on Monday as diplomatic efforts were set to intensify to try to stop rocket fire from the Gaza Strip and Israeli air strikes on Gaza. [Photo/Agencies]

GAZA/JERUSALEM - Israel bombed dozens more targets in the Gaza Strip on Monday and said that, while it was prepared to step up its offensive by sending in troops, it preferred a diplomatic solution that would end Palestinian rocket fire.

Egypt said a deal for a truce could be close, though by late evening there was no end to six days of heavy missile exchanges as Israeli Prime Minister Benjamin Netanyahu discussed his next steps with his inner circle of senior ministers.

US President Barack Obama called Egypt's President Mohamed Mursi, who has been trying to use his influence with Hamas, his fellow Islamists who run Gaza, to broker a halt. Obama "underscored the necessity of Hamas ending rocket fire", the White House said.

The leader of Hamas, speaking in Cairo, said it was up to Israel to end a new conflict that he said it had started. Israel, which assassinated a Hamas military chief on Wednesday, says its air strikes are to halt Palestinian rocket attacks.

To Mursi and in a subsequent call to Netanyahu, Obama said he regretted the deaths of Israeli and Palestinian civilians.

Israeli attacks on the sixth day of fighting raised the number of Palestinian dead to 101, the Hamas-run Health Ministry said, listing 24 children among them. Subsequent deaths raised the toll in Gaza to 106. Hospital officials in the enclave said more than half of those killed were non-combatants. Three Israeli civilians died on Thursday in a rocket strike.

UN Secretary-General Ban Ki-moon, touring the region in the hopes of helping to broker a peace deal, arrived in Cairo, where he met Egypt's foreign minister in preparation for talks with Mursi on Tuesday. He also plans to meet Netanyahu in Jerusalem.

With the power balances of the Middle East drastically reshaped by the Arab Spring during a first Obama term that began two days after Israel ended its last major Gaza offensive, the newly re-elected US president faces testing choices to achieve Washington's hopes for peace and stability across the region.

ROCKET FIRE

Militants in the Gaza Strip fired 110 rockets at southern Israel on Monday, causing no casualties, police said. Israel said it had conducted 80 air strikes on the enclave. The figures meant a relative easing in ferocity - over 1,000 rockets have been fired in the six days, and 1,350 air strikes carried out.

For the second straight day, Israeli missiles blasted a tower block in the city of Gaza housing international media. Two people were killed there, one of them an Islamic Jihad militant.

Khaled Meshaal, exile leader of Hamas, said a truce was possible but the Islamist group, in charge of the Gaza Strip since 2007, would not accept Israeli demands and wanted Israel to halt its strikes first and lift its blockade of the enclave.

"Whoever started the war must end it," he told a news conference in Cairo, adding that Netanyahu, who faces an election in January, had asked for a truce, an assertion a senior Israeli official described as untrue.

Meshaal said Netanyahu feared the domestic consequences of a "land war" of the kind Israel launched four years ago: "He can do it, but he knows that it will not be a picnic and that it could be his political death and cost him the elections."

For Israel, Vice-Prime Minister Moshe Yaalon has said that "if there is quiet in the south and no rockets and missiles are fired at Israel's citizens, nor terrorist attacks engineered from the Gaza Strip, we will not attack".

Yaalon also said Israel wanted an end to guerrilla activity by militants from Gaza in the neighbouring Egyptian Sinai peninsula.

Although 84 percent of Israelis support the current Gaza assault, according to a poll by Israel's Haaretz newspaper, only 30 percent want an invasion.