At least 16 people were killed when a suicide bomber blew himself up in the foyer of a hotel in the northern Israeli coastal town of Netanya. Over 100 were wounded, 26 of which are described as being in a serious condition.
The Islamic militant group, Hamas, is reported to have claimed responsibility for the attack which occurred just after the start of the week-long Jewish holiday of Passover. It is the highest death toll in a Palestianian attack for more than three months.
US President George W. Bush has denounced the attack as as a "cold-blooded killing" and demanded that Palestinian leader Yasser Arafat must do everything in his power to halt such violence.
This attack comes after the start of an Arab summit in Beirut where Saudi Arabia is trying to win approval for a new peace plan.
Palestinian delegates have said they will return to the summit after Lebanon agreed to broadcast an address via satellite from Yasser Arafat. They left the morning session after claiming the Lebanese President had refused to allow the transmission to go ahead.
Mr Arafat has been unable to attend the meeting of Arab leaders because of Israeli-imposed restrictions on his movements.
The peace proposals, unveiled today by Saudi Crown Prince Abdullah, call for normal ties with Israel in return for an Israeli withdrawal from all Arab land occupied since 1967 and the creation of a Palestinian state. The proposals also call for Israel to recognise a Palestinian state with its capital in Jerusalem and the return of Palestinian refugees.
