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Three Palestinians were killed early Sunday in Gaza.

Israeli officials say the men were Hamas Islamist radicals were travelling in a car loaded with weapons. They also claimed to have destroyed Hamas arms factories.

Four other Palestinians were killed Saturday in airstrikes.

Other recent ceasefires have been short-lived, but Hamas spokesman Fawzi Barhoum said the Israeli attacks could help this one stick.

"No one would accept to fight one another while the Israelis are shelling Gaza," he said.

However, the airstrikes have driven Hamas fighters from their bases, and has led the group to accuse Israel and Fatah of colluding.

Israeli Defense Minister Amir Peretz said that Israel is staying out of factional fighting. But he said Israel definitely would like "the moderate forces to emerge with the upper hand."

In an interview with Israel Radio, Peretz was asked if Palestinian Prime Minister Ismail Haniyeh of Hamas and the head of Hamas' military wing, Ahmed Jaberi, could also be targets.

Peretz said he would not rule out any action that "makes it clear to everyone that we don't intend to allow anyone to harm Israeli citizens."

He also said the time wasn't right for a major Israeli ground offensive in Gaza.

Deal still fragile

The news came Saturday after weeks of escalating factional violence in the West Bank.

The past week has proved especially deadly, with more than 50 Palestinians killed and dozens wounded in fighting between Abbas' moderate movement Fatah, and Hamas.

The agreement was arrived at by negotiators at the Egyptian Embassy in Gaza, said the official who spoke to The Associated Press on condition of anonymity.

Gunmen armed with rifles and rocket-propelled grenades left their rooftop positions, and residents began venturing out on the street again.

Under the latest truce, Hamas and Fatah each pledged to pull their fighters off the streets and to exchange hostages later Saturday.

However, before the two sides released their first round of hostages around midnight on Saturday, they shot them in the legs.

Thirty hostages were released at that time, and 19 more are to be released later Sunday.

Still, the gunmen were complying with the withdrawal request and were pulling down roadblocks set up to identify rival fighters.

The accord was endorsed by Palestinian President Mahmoud Abbas and Khaled Mashaal, Hamas' exiled supreme leader, who lives in Syria.

"Both leaders ... made their calculations and realized that they can't gain this way," said Palestinian Information Minister Mustafa Barghouti.

Saudi Arabia has "made it clear they can't accept the failure" of the deal Hamas and Fatah reached to form a national unity government, he said.

That deal was reached at Mecca in February.

With files from The Associated Press