The Palestinian Authority of Yasser Arafat has said that it was not involved in today's car bomb attack in Northern Israel, in which at least two people were killed and another 30 injured. The Authority had been blamed by the Israeli Prime Minister, Ehud Barak. The Authority said that Israel was putting itself in a vicious circle by continuing its daily aggression against the Palestinian people.

The bomb exploded in the town of Hadera. It is believed that the bomb was planted in a car and that the target of the attack was a bus in the centre of the city. The latest killings come as Yasser Arafat held a meeting with the Egyptian President, Hosni Mubarak, in a bid to halt the escalating violence and repair the Middle East peace process.

Their talks followed Cairo's decision to recall its ambassador to Israel to protest the Jewish State's use of "excessive force" against the Palestinians. This decision followed a massive air and sea bombardment of the Gaza Strip on Monday. The violence has continued to spiral, with guerrilla war tactics increasingly replacing widespread street battles, despite urgent international calls for the two sides to show restraint and try to restore calm.

Earlier four Palestinians were killed after an Israeli tank fired on cars in the Gaza Strip. A spokesman for the Israeli Army described the four as terrorists, and said that they had opened fire on the security forces from their vehicles. "It's an execution," said Khaled Abu Oula, head of the Palestinian security force that liases with Israel in the Gaza Strip.