Two Gaza militants, one Israeli killed in flare-up

GAZA (Reuters) - Israel killed two militants in a Gaza air strike on Thursday in an escalating military response to a suicide bombing, and a Palestinian stabbed an Israeli to death at a checkpoint in the occupied West Bank. 

Israel also took diplomatic action, suspending talks with the Palestinians on allowing bus convoys between Gaza and the West Bank, a key part of a deal brokered by U.S. Secretary of State Condoleezza Rice and seen as crucial to peace hopes.