At least five Palestinians have been killed and 45 injured in gunfire after Israeli troops and tanks moved into the Palestinian-controlled section of the West Bank city of Hebron.
An Israeli man was then killed by Palestinians, according to Jewish settlers.
The Israeli forces took over a hilltop known as Abu Sneineh, after Palestinians fired from the hill at Jewish visitors to the divided city for the second day in a row.
During the raid, a gun battle erupted in which five Palestinians were killed and some 45 others were hurt.
Later this morning Palestinians shot dead an Israeli and wounded another on a road near the West Bank town of Tulkarem, according to Israeli settlers.
The two Israelis were standing beside their truck when Palestinians opened fire from a speeding car, witnesses said. The army said it launched a manhunt in the area, which is also close to a Jewish settlement.
The incursion followed a harsh speech by Israeli Prime Minister Mr Ariel Sharon, who all but cancelled US-sponsored efforts for a ceasefire after a string of Palestinian attacks.
Mr Sharon said Israel would take whatever actions necessary to protect its citizens - a signal that a ban on operations inside Palestinian territory, part of the truce - was over.
Israeli troops control about 20 per cent of Hebron, guarding about 500 Jewish settlers living in three enclaves among 130,000 Palestinians.
On Wednesday and Thursday, Palestinians fired at Israelis visiting the city and its disputed holy site - the traditional burial cave of the biblical patriarchs Abraham, Isaac and Jacob. Two women were wounded on Wednesday.
In a statement, the Israeli military said forces were sent into Palestinian areas because of constant gunfire at the settlers and the attacks on the visitors.
The statement said the soldiers would remain in Palestinian areas "for a limited time" until their mission is completed.
The latest deaths bring to 861 the number of people killed since September 28. These include 664 Palestinians and 174 Israelis.
AP