Truck bomb explodes in Gaza

Palestinian youths clash with Israeli troops at the Netzarim Junction, an ongoing flashpoint

NETZARIM JUNCTION, Gaza (CNN) -- A truck filled with explosives blew up in Gaza near an Israeli military outpost Friday, according the Israel Defense Forces.

The Islamic militant group Hamas has said it was a suicide attack marking the anniversary of Israel's troop withdrawal from Lebanon.

Hamas said the driver was killed and identified him as Hussein Nasser, according to the Associated Press.

The heavily fortified Israeli army post guards the road to the Jewish settlement of Netzarim which has been a continuing flashpoint during eight months of violence that has claimed over 500 lives -- the vast majority Palestinian.

IDF officials said the driver had ignored commands to stop and soldiers fired warnings shots before shooting directly at the truck, Reuters reported.

Palestinian officials told Reuters that an Israeli tank shell had hit the vehicle.

The IDF said no Israelis were injured in the incident and did not release details on the driver.

Following the blast, Israeli tanks opened fire on a nearby Palestinian police post. Four officers were left injured, Palestinian officials told Reuters.

The Israeli army said it "removed" the Palestinian post only after police fired first at its soldiers.

Witnesses told Reuters that Israeli forces then moved about 700 metres into a Palestinian-controlled area, cutting off a major road through Gaza.

The violence comes amid international efforts to halt the violence.

Earlier in the week an international commission, headed by former U.S. Senator George Mitchell, released its recommendations to halt the violence including an immediate ceasefire, a freeze on settlement building and a denunciation of "terrorism."

Its findings have been backed by United Nations chief Kofi Annan, the United States and the European Union who have all stepped up diplomatic efforts on the back of the report.

Israeli Prime Minister Ariel Sharon said Tuesday Israeli troops would only respond in "life-threatening" situations but the Palestinians rejected the move as a public relations exercise.