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By Nidal al-Mughrabi and Maayan Lubell GAZA/JERUSALEM (Reuters) - Israel said it shot down a drone from Gaza a week into its offensive on Monday, the first reported deployment of an unmanned aircraft by Palestinian militants whose rocket attacks have been regularly intercepted. Hamas, the Islamist group which runs Gaza, said its armed wing had sent several drones to carry out "special missions" deep inside Israel - a development which, if confirmed, would mark a step up in the sophistication of its arsenal. More than 166 Palestinians, most of them civilians, have been killed, Gaza health officials said, in seven days of fighting that has shown no sign of ending. Israeli aircraft and naval gunboats attacked 204 targets in the Gaza Strip overnight, said the army, in the worst flare-up in Israeli-Palestinian violence in almost two years.More...