(Reuters) -&nbsp;Israel&nbsp;says it has regained control of the Gaza border, pounding the enclave with the worst air strikes in the 75-year history of its conflict with the&nbsp;Palestinians despite a threat by Hamas Islamist militants to execute captives.
CONFLICT
*&nbsp;Israel&nbsp;has called up an unprecedented 300,000 reservists, is blockading Gaza&nbsp;and&nbsp;may be planning a ground assault.
*&nbsp;Israeli TV channels say Hamas fighters killed some 900 people in their unprecedented weekend attack including 260 at a desert music festival. Gaza's Health Ministry puts the&nbsp;Palestinian&nbsp;death toll at 770 in retaliatory strikes.
* Hamas said it would execute an&nbsp;Israeli captive for every civilian house bombed without&nbsp;warning&nbsp;and&nbsp;will not negotiate over hostages "under fire".
* With&nbsp;Israel&nbsp;on a&nbsp;war&nbsp;footing, Prime Minister Benjamin Netanyahu's coalition was about to incorporate opposition politicians a national unity government.
*&nbsp;Israeli shelling on Lebanon killed at least three Hezbollah militants, the group said.
* Various nations have reported citizens perished&nbsp;and&nbsp;abducted by Hamas. Thailand&nbsp;said 18 had died, Argentina 15, the U.S. 11. More than 10 Britons are feared dead or missing, the BBC broadcaster reported.
* The U.N. said&nbsp;Israel&nbsp;had struck residential buildings, schools&nbsp;and&nbsp;U.N. buildings in Gaza, while 180,000&nbsp;Palestinians had been made homeless.
GLOBAL REACTION&nbsp;AND&nbsp;DIPLOMACY
* Iran's top authority Ayatollah Ali Khamenei said Tehran was not involved in Hamas' attack though he "kissed the hands" of those doing damage to&nbsp;Israel.
* The U.S., which already provides&nbsp;Israel&nbsp;with $3.8 billion in military assistance each year, is giving extra security help but has no intention of sending troops, officials said.
* The European Union backtracked in disarray on an announcement that aid to&nbsp;Palestinians had been suspended.
*&nbsp;Palestinian&nbsp;President Mahmoud Abbas is expected to visit Moscow.
* Qatari mediators have held calls to try to negotiate freedom for&nbsp;Israeli women&nbsp;and&nbsp;children seized by Hamas in exchange for 36&nbsp;Palestinian&nbsp;women&nbsp;and&nbsp;children in&nbsp;Israel's prisons, a source briefed on the talks told Reuters. An&nbsp;Israeli official said no negotiations were under way.
* The United States has&nbsp;warned Hamas backer Iran not to get involved in the conflict.
* Amid strong opinions&nbsp;and&nbsp;protests around the world, Harvard University alumni denounced a pro-Palestinian&nbsp;statement from students blaming&nbsp;Israel's "apartheid regime"&nbsp;and&nbsp;"decades of occupation" for the explosion of violence. Canadian authorities condemned pro-Hamas demonstrations as a glorification of violence. Australian police were investigating apparent anti-Semitic chants at a protest.
* Russia says it is in contact with both sides&nbsp;and&nbsp;wants to help resolve the conflict.
INSIGHT
* Hamas waged a campaign of deception to pull off its stunning attack.
* Biden&nbsp;and&nbsp;Netanyahu, uncomfortable allies in the best of times, will put their relationship to the test.
* The crisis threatens to expose the limits of China's ambition to be a mediating power&nbsp;and&nbsp;diplomatic heavyweight in the Middle East.
MARKETS&nbsp;AND&nbsp;BUSINESS
* Oil prices eased after jumping more than 4% in the previous session, gold gained&nbsp;and&nbsp;the safe-haven U.S. dollar edged up against the euro.
* Global companies have suspended some operations in&nbsp;Israel.
* Major international air carriers suspended or reined in flights to or from Tel Aviv.
*&nbsp;Israeli shekel hits weakest level since early 2016.
QUOTES
"We don't have safety or security.&nbsp;What's this life? This is not a life" - Gaza resident Salah Hanouneh, 73.
"We will reach them (Hamas) everywhere" -&nbsp;Israeli military spokesperson Daniel Hagari.
"The Zionist regime's own actions are to blame for this disaster" - Iran's Ayatollah Ali Khamenei.
"Release my son ... I'm speechless. It's completely dark" - mother of Thai migrant worker Natthaporn Onkaew held hostage.
"Fom paradise to hell, in one second." - Elad Hakim, survivor of musical festival hit by Hamas.
&nbsp;
(Editing by Stephen Coates, Gerry Doyle&nbsp;and&nbsp;Andrew Cawthorne)

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