Israeli troops have arrested the Palestinian militant, Ahmed Sadaat, following a raid on a Palestinian prison in the West Bank town of Jericho.
Helicopters, tanks and bulldozers were used to seize control of the facility in efforts to capture Saadat, who has been accused of killing an Israeli cabinet minister.
Two Palestinian security guards were killed and 23 others wounded in exchanges of fire during the operation.
The assault came minutes after British monitors were withdrawn from the prison, prompting furious charges of collusion from the Palestinians.
Israeli spokesman Mark Regev said his government was forced to act because it believed that Saadat, who is leader of the Popular Front for the Liberation of Palestine, was going to be released.
He was jailed in 2002 under a US-brokered deal between Israel and the Palestinian Authority.
Assault on prison prompts unrest
Hundreds of Palestinians have reacted to the prison siege by taking foreigners hostage and attacking a British cultural centre, which has been set on fire.
The demonstrators fired into the air inside the centre and also torched a vehicle. Militants and Palestinian police earlier exchanged gunfire outside the British Council office.
Protestors also stormed the EU compound in Gaza, smashing windows and causing other damage.
A US-based educational organisation, operated by America-Mideast Educational and Training Services, was later targeted by militants who entered the building and caused minor damage.
In the wave of violence that followed the operation, the director of the International Red Cross in Gaza was kidnapped by gunmen and two French members of the Medecins du Monde charity in Gaza were also seized.
The kidnappings came as Palestinian militants from the al-Aqsa Martyrs' Brigades in Gaza City warned US and UK nationals to leave the Palestinian territories immediately.
