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Egypt says Israel and Hamas have agreed to a cease-fire, aimed at ending a week of fighting.

A Palestinian official tells The Associated Press that the truce agreement calls for Israel to cease all military activity against the Hamas-ruled Gaza Strip and for Palestinian militants to cease rocket attacks into Israel.

Ahead of a cease-fire agreement announced in Cairo today, Israel and Palestinian militants continued to trade fire with airstrikes and rocket attacks.

Gaza's Hamas rulers praised today's bomb attack on a bus in Tel Aviv that wounded 27 people. The group did not take responsibility for the attack, but a Hamas spokesman called it a natural response to Israeli strikes that have killed 144 Palestinians in the past week.

After 24 hours of quiet, Gaza's border crossings with Israel would be opened to allow freer movement of goods and people. Egypt would serve as the guarantor of the deal.

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