Palestinians report series of Israeli attacks

JERUSALEM (CNN) -- Palestinian naval targets were hit by Israeli missiles fired from the sea, near Palestinian Authority President Yasser Arafat's office in Gaza City, Palestinian security sources said.

They said one boat capsized and another was badly damaged, and a fuel deposit exploded and burned. In addition, a heavy firefight is under way in Khan Yunis and Israeli bulldozers are razing homes in the Gaza town, the Palestinians said.

The security sources also reported a series of explosions in Rafah, in southern Gaza. An Israeli tank shell hit one house, injuring four people, they said. The sources said the house was targeted.

Israeli military sources confirmed Israeli troops are operating in Gaza but would not give details because the operations were ongoing.

The reports of strikes come after Israelis seized a ship carrying 50 tons of arms in the Red Sea last week. They contend the shipment was authorized by the Palestinian Authority, which the Palestinians deny. The Palestinian Authority released a statement Friday saying it had formed a committee to investigate the weapons ship, and was interrogating several people.

The Israeli strikes also come in response to a Palestinian attack on Israeli soldiers in southern Israel on Wednesday, in which three Israeli soldiers and an officer were killed as well as the two Palestinian attackers. The Islamic group Hamas claimed responsibility. Hamas' military wing carries out military and terror attacks on Israelis.

VIDEO CNN's Mike Hanna has more on Friday's conflict and how it affects peace attempts (January 11) Play video (QuickTime, Real or Windows Media)   MORE STORIES Arafat orders officials detained in arms probe     IN-DEPTH  CNN NewsPass Video    •  Palestinian politics  MORE STORIES   •  IDF: Arms workshops destroyed in Rafah  EXTRA INFORMATION   •  Gallery: Palestinian fatalities  RESOURCES   •  Victims of terror   •  TIME.com: Orchestrating a common ground

Israel also razed several Palestinian homes in Khan Yunis in southern Gaza with bulldozers, Palestinians said. They said a heavy firefight took place at the same time.

Israelis had earlier razed housesThursday morning, sending tanks and bulldozers into a refugee camp in Rafah to flatten houses Israel said had been used to fire on its troops. The Palestinian Authority said 30 homes were destroyed and about 200 people displaced, but the Israel Defense Forces cited smaller figures.

The United Nations said 58 homes were damaged or destroyed, leaving 511 people homeless.

Israeli forces were active in the same area Friday night, blowing up an empty house in Rafah. Palestinian security sources said eight people were injured when the house was hit by a tank shell. The IDF said the house was used for smuggling arms between Egypt and Gaza.

The forceful Israeli military action came as the Palestinian Authority announced it had detained Fuad al-Shobaky, who is in charge of administration and finance for Palestinian security, for questioning in the arms shipment incident.

The authority also ordered Palestinian officials Fathi al Razem and Adel al Mouragabi to be detained and questioned, along with several other Palestinians whose names were not given. All the names were supplied by the Israelis, who intercepted the ship and questioned its commander.

Nabil abu Rudieneh, a close Arafat adviser, said al Razem and al Mouragabi were out of the country but would be detained upon their return. Several others were ordered detained.

Rudieneh insisted the authority itself was not involved with the shipment, and he said Arafat signed an order for the detention of all people "whose names have come up" in connection with the shipment.

He said the detentions did not signify any guilt but were a part of a Palestinian investigative committee's work.

The United States, citing "credible evidence" the Palestinian Authority was involved or knew of the shipment, has called on Arafat to provide an explanation for the arms shipment.