Relatives of Ahmed Barhoum, 22, who was killed early Wednesday by Israeli soldiers grieve over his body before his funeral in Rafah

Israel says it has launched its first airstrike against Palestinian militants in the occupied territories since both sides agreed at a summit earlier this year to work toward restarting the Middle East peace process.

Israel says Wednesday's strike in the southern Gaza Strip was ordered after Palestinian militants fired 15 mortar bombs from a refugee camp into a nearby Israeli settlement, wounding one settler. Separately, witnesses say Israeli soldiers shot and killed another Hamas militant near the Rafah refugee camp.

Meanwhile, Israel has given Jewish settlers in Gaza one week to accept government compensation aimed at gaining their cooperation in the upcoming Israeli withdrawal from the territory.

Tuesday, Israel said that 430 families, about 2,000 of the 8,500 settlers in Gaza, have agreed to move voluntarily to a new community inside Israel.