Israel's army thrust deep into a Palestinian-ruled part of Hebron in the West Bank, blowing up two houses today in retaliation for a sniper attack and warning it would be back again if shooting continued.
The overnight show of force in Abu Sneineh, a strategic rise from which Palestinian gunmen fire on Jewish settlements in the heart of the divided city, cast further doubt on efforts to arrange truce talks after nearly 11 months of fighting.
Palestinian President Yasser Arafat said today during a visit to Beijing that he was ready to renew peace negotiations but charged Israel with blocking such a move.
"We are ready at all times but they are refusing", Mr Arafat told Reuters.
Efforts were under way to bring together Mr Arafat and Israeli Foreign Minister Mr Shimon Peres for truce talks. Israel has refused to start fully fledged peace talks until fighting stops.
In Hebron, the Israeli army withdrew after a three-hour incursion, leaving behind the ruins of the two houses it had blown up after Palestinian snipers wounded an 11-year-old boy from the ancient city's enclave of Jewish settlers.
It made clear the operation was meant to signal that the army could permanently occupy the area if shooting persisted.
"We carried out a limited operation to solve a specific problem and indicate that we have no problem going up there when there is a problem that is intolerable," Deputy Chief of Staff Moshe Yaalon told Israel Radio.
"It is possible we may need to stay up there in order to ensure totally there is no firing from the hills", he said.
But he added: "At the moment we have no intention of doing that."
Equally unmoved, Palestinian gunmen in Hebron said their will was now only greater to continue their uprising against Israeli occupation in the West Bank and Gaza Strip and opposition to Israeli Prime Minister Ariel Sharon.
"This is a lesson for Sharon for trying to enter Palestinian territory. We hope they'll be back again, declared one Palestinian fighter with a gun strapped across his chest."
Palestinians branded the Hebron assault an act of aggression by Mr Sharon's government and vowed to step up the uprising which erupted in late September after peace talks stalled.