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By Nidal al-Mughrabi and Dan Williams GAZA/JERUSALEM (Reuters) - Israel won a partial reprieve from the economic pain of its Gaza war on Thursday with the lifting of a U.S. ban on commercial flights to Tel Aviv, as fighting pushed the Palestinian death toll over 700. A truce between the Jewish state and Hamas Palestinian fighters remained elusive despite intensive mediation bids. Palestinians said residents of two southern villages were trapped by days of tank shelling, with medics unable to evacuate wounded, and U.N. agencies said more than 140,000 people had been displaced. Hamas fired rockets at Tel Aviv and said its gunmen carried out a lethal ambush on Israeli soldiers in north Gaza.