A Palestinian man, thought to have been a senior member of the extreme Hamas movement, has been killed and a second man critically wounded.
The incident happened when a car they were travelling in exploded in the West Bank city of Nablus today. There is speculation that Israeli agents may have been responsible.
Meanwhile, the Israeli Prime Minister, Ariel Sharon, has said that Israeli troops would withdraw from Palestinian towns occupied over the last few days. However, Mr Sharon said that it would only happen once the Palestinian President Yasser Arafat begins to combat terrorism.
Labor Party ministers in the government coalition are threatening to resign if the situation deteriorates further.
In a related development, the Palestinian Authority has outlawed the armed wing of the Popular Front for the Liberation of Palestine, the PFLP. The group admitted killing the Israeli Tourism Minister, Rehavam Zeevi, last Wednesday.
In a statement, the Palestinian High Council on National Security said that actions carried out to avenge the death of the PFLP leader, Abu Ali Mustafa, were banned.
