Israeli strike kills 2, wounds at least 35

An Israeli missile explodes in a retaliatory attack on Palestinian targets in Gaza on Monday night

Attack follows school bus bombing that killed 2 Jewish settlers

In this story: Palestinian Authority denies responsibility for bombing Tensions had eased RELATED STORIES, SITES

GAZA CITY, Gaza (CNN) -- At least two people died and 35 were wounded in attacks Monday night by Israeli helicopter gunships that fired on Palestinian targets in response to the bombing earlier of a school bus carrying Jewish settlers, a Palestinian hospital source said.

The deaths and injuries were a result of the Israel Defense Forces attacks, said Dr. Mousa Abu Hamid, in Khan Yunis in Gaza.

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

AUDIO CNN's Tom Mintier reports on the Israeli strikes against Palestinian targets in Gaza 1.4MB/60 sec. AIFF or WAV sound    VIDEO Watch Chief Palestinian Negotiator Saeb Erakat's statement in response to Israel's bombing of targets in Gaza City (November 20) Play video (QuickTime, Real or Windows Media) Watch Israeli Prime Minister Ehud Barak's statement explaining Israel's retaliatory attacks on Gaza City (November 20) Play video (QuickTime, Real or Windows Media) 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)     MESSAGE BOARD Mideast peace

It appeared that nearly half of Gaza City's approximately 1 million residents were without electricity. The only light visible in much of the city was from the missiles, shot from at least three Israeli helicopter gunships at 12 Palestinian targets.

Targets were hit near Palestinian Authority President Yasser Arafat's seaside office, the headquarters of his Fatah faction and an office of Palestinian preventive security service, which was demolished by at least six missiles.

The Preventive Security Force is a key component of the Palestinian Authority police forces set up under the Oslo peace accords. It has carried out internal security and counter-terrorism functions and has acted as a liaison with the Israel Defense Forces.

The head of Palestinian Preventive Security called the retaliatory strike a serious escalation of the conflict on the part of the Israeli government.

At a news conference after the retaliatory strike, Israeli Prime Minister Ehud Barak described the bus bombing as "barbaric."

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.

Witnesses said several pieces of shrapnel went clean through the bus, which was packed with 50 people. The floor was stained with blood, and the front half was dotted with shrapnel holes.

Jewish settlers identified the dead as a 35-year-old schoolteacher and mother of four children, and a 34-year-old father of six.

Settlers who gathered to pray attached a sign to the bus' shattered windshield accusing Barak of forcing Israel's military to restrain its actions, saying: "Prime Minister, you have blood on your hands."

Barak denied that his administration was "tying the hands of the IDF. This is not a picnic we are starting out on." The prime minister pledged that Jewish settlements in Palestinian territories would be protected.

Both sides accused the other of terrorist acts.

"We're seeing now and watching you know, state terror, Israel unleashing its military might against people that don't have an army or navy or the tanks, whatever," chief Palestinian negotiator Saeb Erakat told CNN. "This proves our point again that Mr. Barak is really taking us and taking Israel and taking the whole region down the drain."

A spokesman for Barak, Gilead Sher, described the attack as a "measured response" and told CNN that people in the Gaza City target areas had been given ample warning before the Israeli strike.

"We stand committed to pursue the peace process, but not under the threat of terrorist attacks," Sher said. "We were attacked every day, every day, in Palestinian-controlled areas... without prior notices."

Tensions had eased

The attack came just a day after Israeli military officials told CNN that shooting violence between Israelis and Palestinians was down considerably in Gaza and the West Bank.

Both sides blame each other for violence that had until Monday left at least 256 people dead since its outbreak September 28. Among the dead are 218 Palestinians, 25 Israeli Jews and 13 Israeli Arabs, according to the International Red Cross and Red Crescent.

The short-lived decrease in violence was attributed to Arafat's order on Friday calling for Palestinians to halt all shooting against Israelis from or within Palestinian-controlled areas. "We are exerting every effort to prevent any element from firing from (Palestinian controlled areas), Arafat said. "Orders have been issued regarding this by the Palestinian National Security Council."

Barak responded to Arafat's comments by saying Israel remained committed to finding a new "pathway to peace" with the Palestinians. That pathway to peace has included diplomatic pressure from other nations to bring the two sides together to stop the unrest.

U.S. Mideast envoy Dennis Ross last week held separate meetings with both Arafat and Barak, but it appeared neither was ready to agree to a three-way summit.

CNN Correspondent Tom Mintier contributed to this report.

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Israel threatens retaliation for soldier's death
November 18, 2000
Arafat: 'Exerting every effort' to end violence
November 17, 2000
U.S. pushes for diplomatic end to Mideast fighting
November 16, 2000
Israel closes borders with Palestinian-ruled areas after more deaths
November 13, 2000
Barak's meeting with Clinton postponed by Russian hijacking
November 11, 2000
After meeting with Clinton, Arafat's next stop is U.N.
November 9, 2000

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