The UN statehood bid, led by Hamas rival Mahmoud Abbas, has deepened the rift between Gazans and their Islamist rulers.
The rising clout of Al Qassam in Gaza dims prospects for mending the Hamas-Fatah rift. Reconciliation talks are slated to start Nov. 9.
While many Egyptian leaders spoke out about the Quran-burning event, Muslims here largely recognize that most Americans don't support such actions.
Israel says it will allow construction materials into Gaza for civilian projects only. In response to international pressure, Israel will ease the Gaza blockade on food, toys, and kitchen utensils.
Amid US and Palestinian anger over Israel expansion plans in East Jerusalem, Prime Minister Benjamin Netanyahu is facing mounting skepticism on peace talks from Palestinians and splits within his ruling coalition.
After Gaza rocket attacks resulted in the first fatality since last year's war, Israeli warplanes carried out retaliatory air strikes on at least six targets overnight. Hamas is struggling to contain unaffiliated militants in Gaza.
Hamas officials said they have evidence, which they refuse to release, that Israel and its Mossad intelligence agency dispatched the assassination team that killed Hamas leader Mahmoud al-Mabhouh in Dubai. They said reports of Palestinian involvement in his murder aren't true.
Gaza militants vowed counterattacks for Israeli air strikes, one day after Hamas-brokered deal to stop rocket attacks.
Its support base dropped to 19 percent after the war; many blame the Hamas-Fatah standoff for their plight. Egypt hosts the rivals for a final round of reconciliation talks July 25.