Two Israeli teenagers were shot dead, and 15 more Israelis were injured, by Palestinian gunmen in an unprecedented raid on a Jewish settlement in the Gaza Strip last night. Although confusion reigned for hours after the first shots were fired, with residents confined to their homes and soldiers fanning out across the settlement, it appeared that two gunmen were later shot dead at one of the homes after prolonged exchanges of fire, and some reports indicated that a third had also been killed.
Israeli military sources discounted initial reports of residents being held hostage at the settlement, Elei Sinai, which lies just across the Israeli border in northern Gaza.
The two Israelis killed were a boyfriend and girlfriend, both 18; several of those injured were soldiers. Mr Dror Maoz, one of the injured settlers, said the gunmen had run through the settlement, firing indiscriminately and throwing hand-grenades. The Islamic militant group, Hamas, claimed responsibility for the attack.
Israeli officials were in contact throughout the evening with the Palestinian President, Mr Yasser Arafat, warning him that unless he immediately took "drastic steps" to crack down on those responsible for this and other attacks on Israeli targets, Israel would regard the much-breached ceasefire of the past few days as being at an end. Mr Arafat issued a statement "strongly condemning the operation" as running counter to Palestinian interests and a "violation" of the ceasefire. He said he had ordered his security forces to take "deterrent legal measures" against those responsible .
The Israeli cabinet met in emergency session overnight, with several right-wing ministers demanding that Israel sever all contacts with Mr Arafat, formally brand the Palestinian Authority an "enemy entity" and immediately launch military strikes.
Moderate ministers, led by the Foreign Minister, Mr Shimon Peres, were resisting this demand. Prior to the meeting, the Prime Minister, Mr Ariel Sharon, expressed horror at "another terrible act", and said Mr Peres's ceasefire talks with Mr Arafat last week, convened under heavy US pressure, had brought "only more terror".
Mr Sharon urged the US to outlaw Hamas, along with Islamic Jihad and Hizbullah. The attack took place only hours after President Bush had issued his first public endorsement of Palestinian aspirations to independent statehood, declaring the US "vision" of the Middle East had always included the creation of a Palestinian state.