The United Nations Security Council passed a resolution late Thursday demanding that Israel and Hamas immediately halt all fighting in the Gaza Strip.
The United States abstained from the vote, but the resolution was passed by a vote of 14-0 amid fears the war could widen after rockets were fired from Lebanon into northern Israel.
The resolution comes on the 13th day of the conflict and follows three days of heated talks between Arab countries and the UN's major power brokers of the France, Britain and the U.S.
While the resolution was brokered by the U.S., Israel's biggest ally, and Palestinian-aligned Arab nations like Egypt, any lasting ceasefire hinges upon the willingness of Israel and Hamas to end the fighting.
"Peace will be made in the region, not in New York, but actions in New York can support the search for peace in the region," said a top-level British diplomat who spoke on the condition of anonymity.
The resolution, which outlines an immediate ceasefire between Israel and Hamas, aims to halt the increasingly deadly and damaging conflict, which began on Dec. 27.
"The key elements are the withdrawal (of Israeli forces), cease-fire, the humanitarian situation, the opening of crossings," said Arab League Secretary General Amr Moussa.
The deal "stresses the urgency of an immediate, durable and fully respected cease-fire" and "condemns all acts of violence and terror directed against civilians" but also dictates that an international force be dispatched to stop weapons smuggling into Gaza, which was an important U.S. demand.
"We're still working very hard. We're making some progress," Secretary of State Condoleezza Rice said before the agreement was announced.
However, senior Hamas official Mohammed Nazzal told Syrian television that Hamas would never surrender and would continue to battle Israel from house to house.
Earlier Thursday, rocket fire from Lebanon into northern Israel raised alarm that a new front would open in the 13-day-old conflict.
The salvo of rockets was launched early Thursday local time, striking an Israeli nursing home and injuring two.
In 2006, Israel launched a furious military response when Hezbollah militants in Lebanon fired into northern Israel.
"The real worry here is that Hezbollah might be responding to what's happening in Gaza by attacking from the north," said CTV's Tom Kennedy, reporting from Jerusalem.
However, he pointed out that Hezbollah normally takes credit for its military strikes, and so far no one has claimed responsibility for the Thursday rocket attacks.
"The rocket entered through the roof, hurling the water heaters into the air. It went through bedrooms upstairs and then into the kitchen. There was a serious blast," Henry Carmelli, the manager of the facility, told The Associated Press.
Shortly after the rocket strikes, which occurred about eight kilometres south of the Lebanese border, Israel carried out "pinpoint fire" in southern Lebanon.
Humanitarian groups accuse Israel of 'delaying' aid
Meanwhile, the Red Cross and the United Nations are suspending all aid shipments to Gaza, saying Israel is firing on humanitarian staff.
On Thursday, a UN truck driver was killed by tank fire as he drove towards an Israeli border crossing to collect an aid shipment - a pick-up the UN said had been co-ordinated with the Israeli Defence Forces (IDF).
A spokesperson for the UN, Chris Gunness, said aid shipments will not resume until Israel can guarantee the safety of aid workers.
"We've been co-ordinating with them (Israeli forces) and yet our staff continue to be hit and killed," he said.
The comments come as relations between Israel and humanitarian groups continue to deteriorate amid accusations the IDF is delaying aid to besieged areas.
According to Dr. Moaiya Hassanain of the Palestinian Health Ministry, 746 Palestinians have died since the Gazan offensive was launched Dec. 27.
In Gaza City, nearly three dozen Palestinians were found dead among the rubble from destroyed buildings. Several bodies were also found in the Zeitoun area of Gaza City, where aid workers have reported finding emaciated young children staying close to the bodies of their dead mothers.
On Tuesday, close to 40 Palestinians were killed when the two UN schools they had taken shelter in came under fire from the
Israeli officials said that 24 rockets were fired into Israel on Thursday, hurting three people and seriously injuring another person.
On Thursday, an Israeli soldier was killed by gunfire during an operation in Gaza, officials said. Nine Israeli soldiers and three civilians have been killed since the war began nearly two weeks ago.
Lebanese Prime Minister Fuad Saniora condemned rocket fire from both Israel and Lebanon, and said the attackers are trying to undermine stability in the region.
Close to 700 people have been killed in Gaza since the offensive began on Dec. 27. About half of those are believed to be civilians.
With files from The Associated Press
