Setting the scene for almost inevitable further Middle East violence, Palestinian leaders yesterday rejected an Israeli demand for the arrests of seven alleged intifada kingpins, whom Israel may now try to kill.
And Israel's Prime Minister, Mr Ariel Sharon, rejected a plea from his own Foreign Minister, Mr Shimon Peres, to offer "diplomatic incentives" to the Palestinian Authority President Yasser Arafat, to try to halt the escalating confrontation.
In the starkest challenge yet to Mr Arafat's regime, meanwhile, his own West Bank Fatah leader, Mr Marwan Barghouti, called for the establishment of a Palestinian "unity" government to include Hamas militants.
Israel's Defence Minister, Mr Benjamin Ben-Eliezer, announced that security forces had intercepted a Palestinian suicide bomber early in the morning, "by chance".
The alleged bomber was to have collected his explosives to detonate them in Tel Aviv, the minister said, adding that he had been recruited by a leading Hamas militant, Mr Amer Haderi, whom Israel assassinated in the West Bank city of Tulkarm on Sunday.
While Mr Haderi was buried after a frenzied funeral procession through Tulkarm, hundreds of Israelis later in the day attended the funeral of a pregnant 40-year-old mother of five, Ms Tehiya Bloomberg, a resident of the West Bank settlement of Karmei Shomron, who was shot dead in a drive-by shooting in the West Bank on Sunday night. Her husband and a daughter were badly injured in the attack, for which Mr Barghouti's Fatah claimed responsibility.
In such a climate, Israeli politicians chorused their defence of what they call the policy of "targeted strikes" - which has been roundly denounced even by Israel's American allies. "If we know there are terrorists on their way to carry out murderous acts, our job is to catch them, and if we can't catch them, then to kill them," insisted a government Minister Mr Danny Naveh. The policy "saves lives", he said. "There is no other way."
Such sentiments appeared to confirm the sense that Israel now intends to strike against seven more alleged key Islamic militants, whom it took the unprecedented step of naming in an official statement issued on Sunday.
Mr Yasser Abed Rabbo, the Palestinian Information Minister said before demanding that the Authority make arrests, "the Israeli government should arrest 50 persons . . . armed settlers". And the Palestinian intelligence chief, Mr Amin al-Hindi, called for international intervention to prevent "a clear Israeli decision to execute those seven".
Mr Barghouti issued his call for a Palestinian unity government at a press briefing in Ramallah, declaring that, "I think we need a new government which allows Hamas and others to participate . . . This will enhance Palestinian unity." The call, though couched in earnest tones, represented a direct challenge to Mr Arafat - to whom Mr Barghouti is ostensibly loyal.
Reuters adds: Palestinian witnesses said yesterday they had seen an Israeli soldier beat a Palestinian policeman, Mr Madhi Mizyed to death with gun butts. The Israeli army said Mr Mizyed (25) was shot in the head while planting a bomb.
Palestinian doctors said Mr Mizyed had been shot in the hip and X-rays of his skull showed no bullet hole and "he was killed by severe beating on the head and not by bullets".