While the sirens rang out, pedestrians stood at attention, traffic came to a standstill while motorists stepped out of their cars, and radio and TV programming was halted.

Memorial Day is one of the most sombre and emotional days on the Israeli calendar. Nearly every Israeli family has been touched by decades of conflict, either losing a relative or knowing someone else who has had a loved one die in battle.

Throughout the day, people attended ceremonies at military cemeteries.

Radio and television stations devoted programs to retelling the stories of soldiers killed in battle.

Schools held solemn memorial services and the Israeli flag flew at half-staff.

"This special day wipes away our divisions - the feeling of unity and shared destiny is stronger than ever," Prime Minister Ehud Olmert said in the central ceremony at Mt Herzl - the country's national military cemetery.

"Memorial Day is a sad day, but free of any disagreements and very Israeli." He added: "We sanctify life, not death, I cannot help but think of how deep the moral gap is between us and our enemies.

"We make every possible effort to limit and focus our attacks on the terrorists and we never intentionally harm the innocent.

"We don't have jihadists, shahidim or mothers who joyfully send their children with bomb belts to blow themselves up in packed buses or in busy malls."

Olmert paid tribute to the bereaved families, saying he felt their great and deep pain.

"We will continue our uncompromising fight against terror not only for our policy of achieving peace but as a moral duty to those who lost loved ones," he went on.

Turning to the terror victims' families, Olmert said: "We must all remember that the hands of the murderers are directed at all of us. Any of us could be a target.

"I therefore embrace you with a strengthening and consoling hand."

The prime minister said he "cannot fail to remember" the numerous Jerusalem terror attacks "to which I myself was a witness".

And he went on to say that Israel "does not negate the right of any people to live in peace."

Olmert stressed that there were "serious negotiations" being held with the Palestinian Authority.

The conflict "in no way lacked a solution".

He said: "The main principles in order to settle the conflict are not very far away from accomplishment."

Referring to Hamas, Olmert said Israel would never give in or negotiate with a group that fights for Israel's destruction and refuses to recognise its right to exist.

At an earlier ceremony for fallen soldiers, Olmert said that "the siren sounded across the country and the clock of life in Israel stopped for one minute".

"Remembrance Day is a sad day but very Israeli," he added. "Anyone who identifies with the flag, even if he is on the other end of the planet, will identify with this day."