Saying that Israel was not respecting the truce agreement, Hamas says it has suspended indirect talks concerning a possible prisoner exchange deal, involving the release of Gilad Shalit, captured Israeli soldier.
By closing its border crossings with the Gaza Strip, Hamas said Israel was not respecting the truce that begun last month , as it had agreed to ease its blockade on Gaza.
In response to sporadic Palestinian rocket attacks, Israel has shut the border crossings several times.
The latest incident was a rocket fired into Southern Israel, that brought the country to shut the crossings on Thursday.
Several of those allegedly involved in recent rocket attacks have been arrested by Hamas.
Although both sides accuse the other of violations, the truce is holding.
Without charge of trial
Cpl Shalit has been seized in June 2006 in a raid into Israel by militants from Hamas and other Palestinian groups. Egypt has been mediating with the two sides, in order to release the soldier. Hamas is seeking the release of hundreds of Palestinian prisoners, held in Israeli jails.
About 8 500 Palestinians are held in those prisons, and about 700 Palestinians are being held in administrative detention, without charge or trial.
By shooting at farmers near the border, and at fishermen, reports from Palestinian human rights groups say that Israeli forces have broken the ceasefire.
The aim of the truce is to stop Israeli incursions into the Gaza Strip, and halt the rockets and mortars being fired from Gaza into southern Israel.
A year ago, Hamas seized control of the Gaza Strip, and drove out security forces loyal to the Fatah faction of Palestinian Authority President Mahmoud Abbas.
As a result of the Hamas takeover, Israel tightened its restrictions on travel in and out of Gaza, sharply cutting back on supplies into the impoverished and crowded territory.
