Israeli tanks rumbled toward Gaza and military reservists were called up tonight ahead of expected retaliatory attacks for a Hamas suicide bombing.
Palestinian police also began arresting members of the Islamic militant group, in an apparent effort to stave off attack.
Tanks were parked tonight outside Gaza, the home base of the Hamas militant group, and Israeli forces around the strip were being beefed up. But Hamas leaders in Gaza said they were going about life as usual.
Hamas founder Sheik Ahmed Yassin planned to attend a wedding reception for one of his seven daughters. Another Yassin leader, university lecturer Mr Mahmoud Zahar, said he was staying at home to prepare exams, and a Hamas spokesmen, Mr Abdel Aziz Rantisi, said his schedule was filled with TV interviews.
Mr Mohammed Dahlan, Mr Arafat's security chief in Gaza, said the Palestinians were expecting an attack.
"Everyone is prepared and our people know how to confront the occupation," said Mr Dahlan, who has been in the West Bank town of Ramallah for months. "We said this before, and we mean it now _ if the occupation forces carry out an aggression, we will face this aggression."
Earlier, the Israeli Cabinet approved unspecified reprisals in response to a Hamas suicide bombing on Tuesday in a Tel Aviv suburb pool hall and illegal casino. Fifteen Israelis were killed in the attack, the deadliest since Israel launched its West Bank military offensive on March 29th in response to a wave of suicide bombings.
The current reserve call-up was smaller than the one that preceded that operation, during which troops occupied six of the eight main Palestinian towns for periods of up to several weeks and fought running battles with Palestinian gunmen.
Foreign Minister Mr Shimon Peres hinted Israel might have a more limited operation in mind this time. "Striking at centres from which the suicide attackers come, or the houses from which they come, or the nests from which the organisation of suicide bombers comes."
Military sources said the operation will be centred on Gaza, but may not be restricted to Gaza. The objective is to hit at Hamas leaders and end the sense of immunity the militants in Gaza have enjoyed, senior official sources said.
Military commentators also said they expected the Gaza operation to be more limited than the West Bank offensive. Fighting in densely-populated Gaza would be much more complicated and could expose troops to greater risks.
EU envoy Miguel Moratinos condemned the suicide attack, but said the EU was "very concerned" it could lead to increasing violence and a new military action. The EU was working with the United States, Russia and the United Nations to try to prevent that, he said.
Palestinian Cabinet minister Mr Saeb Erekat criticised the expected operation. "Such an attack will lead to disastrous consequences for the Palestinian people there," he said. "This will be adding fuel to the fire."
In Gaza City, Hamas officials reported that 16 of their members were arrested by Palestinian police today. None of the senior members of the group were among those taken into custody, however.
AP