Israeli Prime Minister Ehud Olmert reaffirmed Israel's conditions for a Gaza Strip ceasefire with Hamas and warned the Shiite Hezbollah militia in Lebanon against starting any new conflict.

Olmert yesterday said "terrorist" rocket attacks and weapons smuggling from Egypt into Gaza must end before Israel halts its offensive in the Palestinian territory.

"Let the terrorist acts stop, halt the arms smuggling from (Egyptian) Sinai into Gaza, and the Israeli combat will stop," Olmert said on a visit to Sderot, one of the towns in southern Israel which have been hit by rockets from Gaza.