By Ilze Filks and Terje Solsvik

OSLO (Reuters) - Norway should continue to explore for oil and gas and remain a reliable energy supplier to Europe, the country's newly re-elected Prime Minister Jonas Gahr Stoere said on Tuesday, despite having to rely on the Green Party for support.

The minority Labour Party government narrowly won a second term in power on Monday while the populist right wing achieved its best-ever election result, in a ballot dominated by concerns over rising living costs and wars in Ukraine and Gaza.

LONDON (Reuters) -Britain has not concluded that Israel is committing genocide against Palestinians in Gaza despite appalling civilian suffering, according to a government letter.

Israel has been widely accused of the crime, including by the world's biggest group of genocide scholars, over its nearly two-year campaign in the Palestinian enclave that has killed more than 64,000 people according to local authorities.

Ethiopia inaugurated the continent's largest hydroelectric project on Tuesday in what Prime Minister Abiy Ahmed called a "great achievement for all black people", but it drew a protest to the United Nations from downstream nation Egypt.

The Grand Ethiopian Renaissance Dam (GERD), straddling a tributary of the River Nile, is a national project of historic scale and a rare unifying symbol in a country torn apart by ongoing internal conflicts.

By Steven Scheer

JERUSALEM (Reuters) -Israel ordered on Tuesday the demolition of homes in the West Bank hometowns of two Palestinian gunmen who attacked a bus stop in Jerusalem, and will revoke the work permits of hundreds of their fellow villagers and relatives.

The gunmen, from the towns of Qatanna and Qubeiba north of Jerusalem in the Israeli-occupied West Bank, opened fire at a bus stop on the outskirts of Jerusalem on Monday, killing six people.

Israel's military said Tuesday it will act with "great force" in Gaza City and told residents to leave as it stepped up a deadly assault on the Palestinian territory's largest urban centre.

Prime Minister Benjamin Netanyahu issued a similar warning, as Israel intensified its bombardment in preparation for an operation to seize Gaza City despite global calls to end the war.

(Reuters) - Israel's military on Tuesday ordered Gaza City residents to evacuate ahead of a new offensive to seize the enclave's largest urban centre, part of a planned takeover stirring international alarm over the fate of the entire territory.

Taking over the city of one million Palestinians complicates ceasefire efforts to end the nearly two-year war as Prime Minister Benjamin Netanyahu follows through with his plan to take on Hamas' two remaining strongholds.

Pro-Palestinian protesters gathered Tuesday outside a major arms fair in London as it opened without the presence of Israeli government officials because of tension between Britain and Israel over the Gaza conflict.

Police watched as around 300 protesters waved Palestinian flags and held up placards including one reading "UK: Stop arming Israel. Stop the Gaza Genocide."

Three protesters were arrested for assaults on police officers, London's Metropolitan Police said.

By Enas Alashray and Tarek Amara

(Reuters) - The Global Sumud Flotilla for Gaza said on Tuesday that one of its main boats was struck by a drone in Tunisian waters, though all six passengers and crew are safe.

The Portuguese-flagged boat, carrying the flotilla's steering committee, sustained fire damage to its main deck and below-deck storage, the GSF said in a statement.

NAIROBI (Reuters) -Ethiopia officially inaugurates Africa's largest hydroelectric dam on Tuesday, a project that will provide energy to millions of Ethiopians while deepening a rift with downstream Egypt that has unsettled the region.

Ethiopia, the continent's second most populous nation with a population of 120 million, sees the $5 billion Grand Ethiopian Renaissance Dam (GERD) on a tributary of the River Nile as central to its ambitions for economic development.

Organisers of a Gaza-bound flotilla carrying aid and pro-Palestinian activists said late Monday that one of their boats was hit by a suspected UAV off the coast of Tunisia, but authorities there said "no drones" had been detected.

The flotilla, which aims to break Israel's blockade of Gaza, arrived in Tunisia over the weekend and was anchored off the coast of Sidi Bou Said when it reported the incident.