Israel is gearing up for the visit of U.S. President George Bush this week.  But as Robert Berger reports, the high-profile visit comes amid escalating tension between Israel and the militant Palestinian government in the Gaza Strip.  Palestinian medical workers say four Palestinians have been killed, including at least two civilians, in fighting between Israeli troops and militants in the Gaza Strip.  At least 25 Palestinians were wounded.

Ehud Olmert

Prime Minister Ehud Olmert says Israel will welcome President Bush with "open arms."

Mr. Olmert told the Cabinet the president has shown great friendship toward Israel throughout his term and has been a strategic ally.

He said Israel will discuss security issues with Mr. Bush, including what he described as the ongoing "terror" from the Gaza Strip.  Mr. Olmert said a longer-range Palestinian rocket that hit the major Israeli city of Ashkelon last week marked an escalation, and the Israeli army would respond by stepping up raids into Gaza.

Palestinians carry a woman, injured during an Israeli army operation, into the Al Aqsa hospital in Deir El-Balah, Gaza, 06 Jan. 2008

In addition, Palestinian officials say Israeli fuel cuts to Gaza will force residents there to live without electricity eight hours a day beginning Sunday.  Israeli officials said the cuts are a "stern message" to the Islamic militant group Hamas to halt the rocket attacks.

Israel has tightened sanctions on Hamas since it seized control of Gaza in June, when it routed the Fatah forces of western-backed Palestinian President Mahmoud Abbas.  He now heads a moderate government in the West Bank.

Officials in the Abbas government have condemned the Israeli fuel cuts and raids into Gaza, saying they are harming the atmosphere in peace talks which resumed last month after a seven year break.

President Abbas and Prime Minister Olmert will meet Tuesday to discuss Gaza and other issues, a day before President Bush arrives for a three-day visit to Israel and the West Bank.