Israeli and Turkish officials on Monday began talks on compensation over a deadly Israeli raid on a Gaza-bound aid ship, a crucial step towards restoring the once-solid ties between the two countries.

Israel last month finally made a formal apology for the botched 2010 raid in which its troops killed nine Turkish activists on a Gaza-bound flotilla.

A van carrying 12 passengers and driven by Hussein Mohammed Barakat on Sunday overturned on Adaisseh's public road and slid into an area disputed with Israel on the border, state-run National News Agency reported.

Several passengers were injured and some of them were transported to hospital for treatment, NNA said.

Israeli Prime Minister Benjamin Netanyahu on Sunday vowed Israel would "exact a price" from the Gaza militants who recently fired missiles from Sinai at the southern resort city of Eilat.

"Last week missiles were fired from Sinai at Eilat," Netanyahu said at the start of his weekly cabinet meeting.

Israeli airline staff went on strike on Sunday to protest against a government proposal to finalize a deregulation plan with European carriers which they say would result in widespread layoffs.

"Implementing the Open Skies agreement in its current format will have severe ramifications, which would fatally and irreversibly harm civilian aviation in Israel," Histadrut trade union chairman Ofer Eini said in a letter addressed to Prime Minister Benjamin Netanyahu.

A major U.S. arms deal with Israel sends a "very clear signal" to Tehran that military action remains an option to stop it from going nuclear, U.S. Defense Secretary Chuck Hagel told reporters on Sunday.

Asked if a multi-billion dollar arms package with Israel was designed to convey a message that a military strike remains an option, he said: "I don't think there's any question that's another very clear signal to Iran."

Militants in the Hamas-run Gaza Strip fired a projectile that hit southern Israel overnight, without causing any casualties or damage, police said on Sunday.

"Late last night -- after midnight -- sirens sounded in the Eshkol region," police spokesman Micky Rosenfeld told Agence France Presse.

Israeli police paraded a cuffed Palestinian teenager to protesters in what a human rights group charged Saturday was abuse of a "human shield" but an Israeli spokesman said was a move to calm violence.

Defense for Children International-Palestine (DCI) posted a 76-second video clip on YouTube showing helmeted border policemen removing a young Palestinian it identified as "Muhammad R,17," from their armored jeep and forcing him to stand beside them, cuffed hands raised above his head.

The United States unveiled plans Friday to sell $10 billion worth of advanced missiles and aircraft to Israel, the United Arab Emirates and Saudi Arabia in a bid to counter the threat posed by Iran.

It was highly unusual for the Pentagon to announce an arms deal covering three countries and the move seemed to be designed to send a warning to Iran that Washington's partners in the region were beefing up their military power.

Israeli President Shimon Peres on Thursday pardoned a Palestinian prisoner who had carried out two long-term hunger strikes, citing concerns over his health, a statement from his office said.

"Peres accepted the recommendation of the Justice Minister Tzipi Livni, in coordination with the security services, and signed the release of Mohammed Kamal al-Taj," the statement said.

Caretaker Energy Minister Jebran Bassil announced on Thursday that 46 international companies have been shortlisted to tackle the country's offshore oil and gas wealth.

He said that the 12 operator and 34 non-operator companies will be narrowed down and the remaining companies will be granted the proper license to extract the offshore wealth.