Egypt said on Monday it formally requested that Israel look into a statement attributed to Foreign Minister Avigdor Lieberman in which he described Egypt as more "worrying" than Israel's arch-nemesis Iran.

A foreign ministry statement said Foreign Minister Mohammed Kamel Amr asked Cairo's ambassador in Tel Aviv to request "clarifications on the accuracy of the statement attributed to the Israeli foreign minister."

Military Examining Magistrate Imad al-Zain issued an arrest warrant on Monday against a Lebanese citizen on charges of contacting Israel.

G.M. is accused of providing Israel with information on missing Israeli military airman Ron Arad.

Egypt has scrapped a 2005 gas export deal with Israel, which relies on Egyptian natural gas for 40 percent of its supplies to produce electricity, the chairman of a government holding firm said on Sunday.

The accord was "annulled on Thursday with the East Mediterranean Gas Co (EMG) which exports gas to Israel because the company failed to respect conditions stipulated in the contract," Mohamed Shoeib told Agence France Presse.

Palestinian militants in the Gaza Strip fired a rocket which hit southern Israel on Sunday, without causing casualties, Israeli police said.

"There was one rocket that was fired into the southern region, it landed in an open area causing no damage and no injuries," police spokesman Micky Rosenfeld told Agence France Presse.

Israel's army chief has said that in case of a regional war, his forces will be able to cope with the rocket threat from Lebanon and from the Gaza Strip.

"I can’t promise no missiles will be landing here. They will be falling; many of them. It won’t be a simple war, neither on the frontlines nor on the home front,” army chief-of-staff Benny Gantz said in an extract from an interview with the top-selling Yediot Aharanot daily.

Israeli forces are carrying out more special operations beyond the country's borders and will be ready to attack Iran's nuclear sites if ordered, the chief-of-staff said in an interview on Sunday.

In an extract from an interview with the top-selling Yediot Aharanot daily, Lieutenant General Benny Gantz said that 2012 would be a critical year in efforts to halt what Israel and much of the international community believe is an Iranian nuclear arms program.

At least 1,350 Palestinian prisoners being held in Israeli jails are observing an open-ended hunger strike, the Israeli Prisons Service said on Sunday, after another 150 inmates began refusing food.

"There are now 1,350 Palestinian prisoners on hunger strike," said Sivan Weizman, spokeswoman for the Israel Prisons Service (IPS).

Israeli Prime Minister Benjamin Netanyahu sought to sidestep strife in his right-wing coalition on Sunday by forming a committee to seek legal solutions to contested settlement projects.

The dispute centers on the government's policy on settlements in the occupied West Bank and its commitment to dismantle a number of unauthorized settler outposts in line with a supreme court ruling of August 2011.

An Israeli court has ordered a group of Jewish settlers to leave a house in the southern West Bank city of Hebron after ruling that their claim to ownership was false, court documents showed.

In a hearing at Jerusalem District Court, Judge Ram Winograd ruled late last week that the settlers' argument that they had legally purchased the property, "does not hold water."

The European Union missions in Jerusalem and Ramallah condemned on Saturday the recent eviction of a Palestinian family from its east Jerusalem home, ahead of its inhabitation by Jewish settlers.

The EU missions "condemn the eviction of the Natshe family from their home in the east Jerusalem neighborhood of Beit Hanina," a statement read.