ISRAEL: Israel's leaders yesterday blamed the Hamas-led Palestinian government for the worst suicide bombing in 20 months but decided against launching a large-scale military operation - an apparent attempt to avoid escalating violence in Israel's showdown with the Islamic militant group.
Israeli officials said the measured response would help preserve the strong international front against Hamas. But they said Israel will take all steps it deems necessary, including assassinating militants, to prevent further attacks.
Monday's blast outside a Tel Aviv restaurant, which killed nine people and wounded dozens others, was carried out by the Islamic Jihad militant group. Although Hamas was not directly involved, its leaders defended the attack as a justified response to Israeli military strikes against Palestinian militants.
Interim Israeli prime minister Ehud Olmert met with top officials and security chiefs for two hours yesterday to weigh a response. The group decided to hold Hamas accountable because it didn't denounce the bombing.
"Israel sees the Palestinian Authority as responsible for what happened yesterday," said Gideon Meir, a senior Israeli foreign ministry official.
But Olmert decided against launching a large-scale military operation and blocked a proposal to declare the Palestinian Authority (PA) an "enemy entity," participants said. Such a declaration would have paved the way for direct strikes against the PA. Until now, economic and political boycotts have been Israel's main tools against the Hamas government.
Israeli officials said the government is pleased with the strong international front against Hamas and does not want to jeopardise that through overwhelming military action. Western donors have cut off tens of millions of dollars in direct aid to the PA, demanding that Hamas renounce violence and recognise Israel's right to exist.
Hamas has rejected the calls, despite a mounting financial crisis that has left the government broke and unable to pay the salaries of 164,700 employees.
One senior Israeli official said it is not realistic to expect Israel to immediately carry out large-scale airstrikes as a knee-jerk response to Palestinian violence.
"This doesn't mean you won't see more targeted killings and other operational things," he said.
Olmert aides said he is well aware of the need to maintain international support, especially as he prepares to carry out a unilateral withdrawal from much of the West Bank.
Olmert says he will carry out the pullout if he concludes there is no negotiating partner on the Palestinian side - a likely scenario with Hamas in power. Olmert is also showing restraint because he is forming a new coalition government.