Israeli Prime Minister Ariel Sharon has ruled out talks with Palestinian President Mahmoud Abbas until he takes "serious action" against armed groups, the prime minister's office said today.
Mr Sharon has also promised a "non-stop" offensive against Palestinian militants following yesterday's suicide bombing in the coastal town of Hadera which killed five people.
"Unfortunately the Palestinian Authority has not taken any serious action to battle terrorism," Mr Sharon said. "We will not accept under any circumstances a continuation of terrorism. Therefore our activities will be broad and non-stop until they halt terrorism."
Mr Sharon's office later quoted him as saying: "If the Palestinian Authority doesn't take serious action against terror, there will be no political progress."
"Under such circumstances, I shall not meet with Abbas, and the Palestinians lose out on all their national dreams."
Palestinian President Mahmoud Abbas condemned the bombing, but the White House said he needs to do more to stop militants in order to advance peace talks.
The Islamic Jihad militant group said one of its members carried out yesterday's suicide bombing in response to the killing of one of its top West Bank commanders on Monday.
Israel has said it plans to strike back at militants, specifically those from Islamic Jihad, during a northern West Bank offensive. It has not given a timetable for the assault.
Israeli warplanes launched a third successive day of strikes in the Gaza Strip today, targeting militant sites.
The Israeli military said it launched the air strikes to prevent militants from firing rockets into the Jewish state during the worst violence since Israel withdrew from Gaza last month after 38 years of occupation.
The military said a first wave of air strikes targeted rocket launching sites, while a second wave was aimed at a road and a bridge in northern Gaza.
No casualties were reported in the air strikes, mounted in response to rocket attacks since Monday.
The Hadera attack was the first such attack since Israel's Gaza pullout and another blow to international hopes for a revival of peacemaking.