Israel launches retaliatory attack on Fatah in Gaza

An Israeli soldier points to damage caused to the armored school bus

Strike follows school bus bombing that killed 2 Jewish settlers

GAZA CITY, Gaza (CNN) -- Israeli military forces fired missiles on the Gaza City headquarters of Fatah, the political movement of Palestinian Authority President Yasser Arafat, in response to the bombing earlier of a school bus carrying Jewish settlers.

Shortly before the attack, Fatah representatives denied responsibility for the bus bombing, which killed two Israeli settlers and injured nine others, including five children.

VIDEO The deadly attack appeared to be aimed at a bus carrying schoolchildren from the Jewish settlement of Kfar Darom Play video (QuickTime, Real or Windows Media) CNN's Fionnuala Sweeney reports on the first attack on Israeli targets in Jordan during the current Mideast violence (November 19) Play video (QuickTime, Real or Windows Media)     MESSAGE BOARD Mideast peace

At least two Israeli helicopter gunships launched more than a dozen guided missiles at several targets in the heart of the city. Arafat's preventative security headquarters was destroyed in the attack. There were no immediate reports of damage or casualties.

Palestinian Authority denies responsibility for bombing

The Palestinian Authority also issued a statement of its own denying any responsibility for the bus bombing, which came just 48 hours after Arafat called for an end to attacks against Israeli targets in areas under full Palestinian control.

Three pro-Palestinian groups have claimed responsibility for Monday's bus bombing -- Palestinian Hezbollah, al-Aqsa Martyrs and Omar al-Mukhtar.

The Israel Defense Forces said a mortar shell was used to bomb the bus, possibly detonated by the means of attached wires. An IDF spokesman said three Palestinians were seen fleeing the area shortly after the attack.

Before the attack, which occurred near the Gaza town of Kefar Darom, the road had been surveyed for explosive devices, the IDF said.

The attack prompted Israeli Prime Minister Ehud Barak to call an emergency meeting of his national security Cabinet on Monday in Jerusalem.

CNN Correspondent Tom Mintier contributed to this report.

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