US President Barack Obama has warned Hamas it must free a captured Israeli soldier if it is serious about peace in Gaza.
Mr Obama said Second Lieutenant Hadar Goldin, who is reported to have links to the UK, must be “unconditionally” released.
The Israeli army said the 23-year-old soldier was kidnapped on Friday just 90 minutes into a three-day ceasefire, which has now collapsed.
Two other Israeli soldiers were reported to have been killed in the attack.
Mr Obama warned that the alleged abduction marks a major setback in efforts to secure a halt in fighting.
Describing the situation as “heartbreaking”, he told reporters: “A ceasefire was one way in which we could stop the killing, to step back and try to resolve some of the underlying issues.
“Trying to put that back together is going to be challenging, but we will continue to make those efforts.”
Sky’s correspondents in Gaza say civilians on the ground now fear a severe Israeli reprisal, with the military expected to step up operations in the wake of the abduction.
Israel‘s Prime Minister Benjamin Netanyahu has warned that Hamas and smaller militant groups will “bear the consequences of their actions”.
At least 70 Palestinians were killed in Israeli airstrikes on Friday, bringing the total death toll in the latest Gaza conflict to more than 1,500.
The United Nations estimates that up to 80 percent of those killed are civilians. It says another 440,000 people, a quarter of Gaza’s population, have been displaced by the fighting.
Two Palestinians were also killed in clashes with the Israeli military in the West Bank, as violence erupted over Israel’s renewed assault on Gaza.
Both sides accuse each other of breaking the truce, which was announced by the US and the UN late on Thursday and began at 8am (6am UK time) Friday.
However UN Secretary General Ban Ki-moon joined President Obama in pointing the finger of blame at Hamas, saying he was “shocked and profoundly disappointed” by its violation of the truce.
Britain’s Foreign Secretary Philip Hammond also expressed his dismay at the abduction, adding that the Foreign Office was investigating reports Second Lieutenant Goldin has ties to the UK.
However Mr Hammond played down earlier reports the soldier has dual Israeli-British nationality.
The Israeli army said Second Lieutenant Goldin was abducted after gunmen emerged from one or more of the tunnel openings and opened fire.
An Israeli army spokesman said at least one of the fighters blew himself up with an explosives belt.
The missing soldier, whose twin brother is also said to be in the Israeli army, was then reportedly dragged into one of the tunnels.
His father, Simcha Goldin, told reporters: “The IDF (Israeli Defence Forces) will not stop until there is no stone left unturned in the Gaza Strip and until Hadar is returned home safe and sound.”
Israelis remain scarred by Hamas’ abduction of Israeli soldier Gilad Shalit in 2006. He was freed five years later in exchange for the release of more than 1,000 Palestinian prisoners.
More than 60 Israelis, nearly all soldiers, have been killed during the latest conflict, which began on July 8.
Before Mr Obama spoke, the United States rushed through a $225m bill (£133.6m) to replenish Israel’s missile defence system.
The funding, expected to be approved by lawmakers in the coming hours, will go towards Israel’s Iron Dome.
The Iron Dome, which tracks and shoots down rockets approaching populated areas, is credited with a 90% success rate, limiting the civilian death toll.
Obama Demands Soldier's 'Unconditional' Release
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