"It must be clear. The state of Israel has no intention of halting counter-terrorism actions even for a second," Olmert said.

Olmert also rebuked international criticism of the Israeli incursion into Gaza which officials say killed at least 80 Palestinians since Wednesday, The Jerusalem Post reported.

"Nobody has the right to preach morality to the State of Israel for taking basic action to defend itself and prevent hundreds of thousands of residents of the South from continuing to be exposed to incessant firing that disrupts their lives," the prime minister said.

Olmert said Israel was "interested" in continuing negotiations with the Palestinian leadership and said the actions targeting Hamas in Gaza contribute to the possibility of peace in the region.

The chief Palestinian negotiator, Saeb Erekat, said talks with Israel were "buried in the dust of the Israeli invasion" of Gaza and Mahmoud Abbas, the president of the Palestinian Authority, broke off all contact with Israel Sunday in protest of the Israeli incursion.