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JERUSALEM-Israeli Prime Minister Ehud Olmert on Thursday issued a "last-minute" appeal to Palestinians in the Gaza Strip to reject their Hamas rulers and stop rocket fire at Israel, warning them he would not hesitate to use force. His comments were the clearest indication yet that Israel was preparing a possible Gaza offensive which could result in heavy casualties on both sides and fuel a humanitarian crisis. Israeli political sources said Olmert's security cabinet approved a "staged" military escalation, beginning with air strikes against a wider range of Hamas targets in the densely-populated enclave. A large-scale operation has yet to be authorized but could get a green light depending on Hamas's response, the sources said.In Gaza, Hamas spokesman Fawzi Barhoum said Israel would "pay the price" for any attack.Olmert told Al Arabiya television, an Arab broadcaster widely watched in Gaza: "I didn't come here to declare war.""But Hamas must be stopped-that is the way it is going to be. I will not hesitate to use Israel's might to strike Hamas and (Islamic) Jihad. How? I will not go into details now," Olmert said, according to a statement issued by his office.Olmert has resisted calls within Israel for a major military operation against Hamas, but rocket and mortar fire from the coastal enclave since a six-month truce brokered by Egypt expired last week has increased pressure on him to act.Israeli Foreign Minister Tzipi Livni, a leading candidate to replace Olmert in a February 10 election, held emergency talks with Egyptian President Hosni Mubarak, in Cairo, who cautioned against an escalation.(Additional reporting by Allyn Fisher-Ilan in Jerusalem, Ali Sawafta in Ramallah, Nadim Ladki in Beirut, Alaa Shahine in Cairo, Nidal al-Mughrabi in Gaza and Haitham Tamimi in Hebron; editing by Andrew Roche)
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