The United States announced signs of progress in cease-fire talks Wednesday, but prospects for a quick end to the fighting were dim as Palestinian families fled fierce battles in southern Gaza and the death toll rose to at least 695 Palestinians and 34 Israelis. On the ground, meanwhile, Israeli troops backed by tanks and aerial drones clashed with Hamas fighters armed with rocket-propelled grenades and assault rifles on the outskirts of Khan Younis, killing at least eight militants, according to a Palestinian health official. Israel has insisted it must substantially curb the military capabilities of the Islamic militant group that controls Gaza - a position that appears to have gained support within the U.S.