DEEP political uncertainty gripped the North last night in the wake of the bomb that wrecked the Killyhevlin Hotel, in Enniskillen, Co Fermanagh, on Saturday night and marked a further escalation in violence.
The loyalist paramilitary ceasefire was perceived to be under intense strain after the attack, although the IRA quickly denied responsibility and suspicion fell upon militant elements associated with Republican Sinn Fein. A member of the party's ardcomhairle, Mr Joe O'Neill, last night denied it had any involvement.
In Dublin, Government sources appeared to accept the IRA denial of involvement, and pointed to Sinn Fein's efforts to calm tension in the streets.
The first signs of a respite from the street violence of the past week were detected as, up to late last night, cities and towns throughout the North seemed quiet.
But the Killyhevlin explosion, which injured 17 people, none seriously, raised fresh fears that loyalist paramilitaries might retaliate - a development which could draw the IRA into open conflict in the North.
The political vacuum intensified as the SDLP announced at the weekend that it would withdraw its representatives from the elected forum because of the week's events - in particular, the handling of the Garvaghy Road controversy.
Unionists reacted furiously to the SDLP move, casting further doubt over the prospects for the multi party peace talks due to resume at Castle Buildings, Stormont, tomorrow.
The UUP leader, Mr David Trimble, attacked the SDLP leader, Mr John Hume: "Why is he reverting to a policy of abstentionism ... Why is the SDLP now adopting Sinn Fein tactics?"
The DUP leader, the Rev Ian Paisley, accused the SDLP of heightening tension by its move.
The Killyhevlin bombing was widely condemned, but the RUC Chief Constable, Sir Hugh Annesley, said it was too early to say who was responsible.
Northern Ireland Minister, Mr Michael Ancram, hoped the incident did not signal the resumption of a full scale bombing campaign, but added that the British government was firmly resolved to deal with such an eventuality.
The response of the loyalist paramilitaries remained uncertain last night. Mr David Ervine, of the Progressive Unionist Party, said the loyalist ceasefire was now under intense pressure.
As security was stepped up along the Border, Mr Ervine said he would be asking the loyalists to be circumspect.
Meanwhile, the funeral takes place this morning of Mr Dermot McShane (35), the first fatality of the three days of intensive rioting in Derry. He is believed to have been crushed by a British army vehicle during clashes on Friday night.
The RUC was last night investigating the circumstances in which a man received serious gunshot wounds in Belfast on Saturday night.
. A senior Government source in Dublin last night told The Irish Times that the bombing was being linked to the military wing of Republican Sinn Fein primarily because of intelligence reports that a former "expert bomb maker" from the Provisionals had defected to the group. The source stressed that there was "no definitive evidence" but he said that security sources appeared satisfied at this early stage in the investigation that there was no IRA involvement.