Israeli troops killed at least eight Palestinians today in the deadliest raid in the Gaza Strip in more than a month, casting a shadow over a new US push to salvage a battered peace plan.
Hamas and Islamic Jihad, the main groups behind a campaign of suicide bombings against Israelis, vowed revenge, saying five of their fighters were among those killed in fierce gunbattles in Gaza City. Medics said the other dead were civilians, but Israel said all were armed "terrorists".
Israel's Army Radio said that 13 Palestinians had been killed during the raid.
"The bloody message has been received...and the Palestinian people will know how to respond to it," Islamic Jihad leader Mohammed Al-Hindi said.
An Israeli army spokesman said: "The operation was intended to strike at people who every night are firing mortars and planting bombs against Netzarim."
Gunbattles erupted with dozens of militants in Gaza's Zeitoun neighbourhood. Troops shot dead four gunmen from Islamic Jihad including two field commanders and one fighter from Hamas before pulling back, the groups said. Among the bystanders killed was a 17-year-old, medics said.
But the Israeli commander in charge of the operation told Army Radio: "I can say with certainty that everyone who was killed was a terrorist, armed with a weapon."
Seven Palestinians were wounded, including an ambulance worker whose vehicle was struck by what medics said was Israeli fire while on the way to pick up casualties.
The raid, which Israel said was aimed at rooting out militants who frequently attack a nearby Jewish settlement, began as US envoy Mr John Wolf headed for talks with Palestinian Prime Minister Ahmed Korei in the West Bank city of Ramallah.
Returning after months of absence, Mr Wolf pressed Mr Korei and Israeli Prime Minister Ariel Sharon to hold a long-delayed summit crucial to reviving a peace "road map", and demanded that Palestinians curb militant violence, officials said.