TEHERAN - IRAQI Prime Minister Nuri Al-Maliki said on Sunday that he hoped Iran would help rebuild his conflict-torn country by boosting economic ties.

'We agreed to set up a joint service contract company with Iran... when Iraq witnesses stability and when the national unity government starts the reconstruction,' Mr Maliki told reporters as he wrapped up a two-day visit.

PARIS - ISRAEL'S tank and troop assault on the Gaza Strip unleashed cries of alarm worldwide on Sunday, but Israel won heavyweight US backing and moves for an immediate ceasefire foundered at the United Nations.

British Prime Minister Gordon Brown echoed grave European concerns when he said the ground offensive was a 'very dangerous moment' in the conflict, and he called for increased efforts to rapidly secure a ceasefire.

GAZA CITY - FRANTIC families in Gaza fled advancing Israeli troops by car and on foot on Sunday to the sound of booming explosions as infantry supported by tanks thrust farther into the Hamas-run enclave.

Streets remained deserted in Gaza City, capital of the battered and densely populated Palestinian territory, as it was encircled by Israeli forces cutting off the main access roads.