Israeli Prime Minister Ehud Olmert has instructed the military to scale back air strikes and raids into the Gaza Strip following a significant reduction in rocket fire coming from Hamas militants, officials said Monday.

Israeli Prime Minister Ehud Olmert is seen during a welcoming ceremony at the prime minister's Jerusalem office on Monday.
(Dan Balilty/Associated Press)

Olmert ordered the move to allow Egypt, which has been trying to mediate a truce between Israel and Hamas, to proceed with talks, officials from his office told the Associated Press.

Speaking on Monday, Olmert said the rocket launches into southern Israel and the shooting that killed eight young Jewish students at a Jerusalem seminary last week would not undermine peace efforts.

"Their purpose is to divert us from a path of peace," Olmert said. "There's no chance that they will succeed."

He said Israel is prepared to take a "significant, important and dramatic step" to advance peace. "We will not give up on this effort," he said.

Palestinian President Mahmoud Abbas had temporarily broken off talks following the Israeli military incursion into the Gaza Strip to stop Hamas from firing rockets into the southern part of the country. More than 120 Palestinians were killed in the campaign.

Hamas officials have said they will stop firing on Israel if Israel halts its military operations. Olmert has also said Israel will cease its operations if the rocket launchings end.

In recent days, Israeli and Hamas officials have both travelled to Egypt for mediation talks that are supported by the United States.

On Monday, the U.S. White House said Vice-President Dick Cheney will leave Sunday to travel to the region to meet with Mideast leaders in Israel, the West Bank and Saudi Arabia among others.

With files from the Associated Press