Israel warns of 'painful' action against Hamas

ABC Online - Australia

Israeli Prime Minister Ehud Olmert says he expects to reach only the framework of a peace deal with the Palestinians this year and warned of "painful" action against Hamas to halt militant attacks from the Islamist-controlled Gaza Strip.

Mr Olmert also vowed that Israel would press on with settlement building on occupied Palestinian land despite international calls for a halt to the activity

Israel's settlement activity is one of the major reasons why Israeli-Palestinian peace talks have made little progress since they were renewed at a United States conference in late November.

Mr Olmert has called for international action to prevent Iran from acquiring weapons of mass destruction.

He says Israel remains convinced that Iran is trying to achieve a non-conventional capacity - a reference to nuclear weapons.

Iran denies it is pursuing a nuclear program for military purposes.

Mr Olmert says other world leaders have put all options on the table when it comes to dealing with Iran, and he agrees with their statements.

He also says the outline of a two state agreement with the Palestinians can still be reached by the end of the year and he is personally committed to continuing negotiations.