Israel masses forces for possible strike on Gaza

Israeli troops stand atop tanks near Gaza on Thursday.

JERUSALEM (CNN) -- Israel called up reservists and massed forces for a possible military strike on Gaza as Palestinian officials warned that any attack would undermine diplomatic efforts to revive the Mideast peace process.

In Bethlehem, meanwhile, the five-week standoff at the Church of the Nativity ended as Palestinians inside began walking out. The 13 militants who were at the center of the negotiations will be sent into exile in various European countries.

Another 26 gunmen would face trial in Gaza on terrorism charges. About 80 other Palestinians not wanted by Israel would be set free. (Full story)

Victims of Rishon Letzion bombing • Esther Bablar, 54, Bat Yam • Yitzhak Bablar, 57, Bat Yam • Avi Bayaz, 26, Nes Ziona • Malka Regina Boslan, 62, Jaffa • Edna Cohen, 61, Holon • Rahamim Kimhi, 58, Rishon Letzion • Pnina Hikri, 60, Tel Aviv • Nawa Hinawi, 51, Jaffa • Nir Lovatin, 31, Herzliya • Shoshana Magmari, 51, Tel Aviv • Dalia Masa, 56, Nahalat Yehuda • Haim Rafael, 64, Tel Aviv • Sharouk Rassan, 60, Holon • Israel Shikar, 45, Rishon Letzion • Anat Teremforush, 36, Ashdod  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

Yet as the church standoff in the West Bank city came to resolution, much of the focus was shifting to Gaza in the aftermath of Tuesday's terrorist bombing that killed 15 people in a gaming hall in the Israeli town of Rishon Letzion. Israeli police said the suicide bomber was from Gaza and belonged to the radical Islamic group Hamas.

The Israel Defense Forces said reservists were being called up but would not say how many. Along the Gaza border on Thursday, witnesses reported Israeli tanks on the move, and Israeli forces made a brief incursion into Gaza Thursday near Rafah with a small contingent of tanks and troops.

According to Hamas officials, Palestinian Authority security forces arrested at least 14 Hamas activists in Gaza, though none were senior members. In a denunciation of terrorism issued on Wednesday, Palestinian Authority leader Yasser Arafat vowed "to confront and prevent any terror attack against Israeli civilians from any Palestinian side."

But the Israeli Cabinet took no notice of Arafat's comments, moving to authorize retaliation for the attack. Prime Minister Ariel Sharon has said he holds the Palestinian leader directly responsible for what happened at Rishon Letzion.

Dore Gold, a senior adviser to Sharon, said the number and relatively low level of the Hamas militants arrested were "not particularly impressive." He also said Israelis were skeptical because information uncovered during their military action in the West Bank showed "collusion" between Palestinian security forces and Hamas.

The U.S. State Department considers Hamas a terrorist organization. Its military wing, the Izzedine al Qassam Brigades, has claimed responsibility for many previous attacks on Israeli civilians.

Chief Palestinian negotiator Saeb Erakat said the Israeli Cabinet's decision was "adding fuel to the fire" and warned of "human and environmental catastrophes if the attack is carried out against the Gaza Strip, which is the most densely populated area on earth."

"Such an attack would be a clear indication that Sharon continues in the path of destroying the peace process," Erakat said.

Israeli Foreign Minister Shimon Peres told Israel Army Radio that Israel does not intend to occupy Gaza. Rather, he said, the Israelis will strike "areas where there is a concentration of suicide terrorists."

Israeli military sources said the campaign would include air attacks in conjunction with ground operations.

In Gaza, sandbags and mounds of dirt were massed along roadways to be used as barricades against Israeli forces in the event of the attack, and residents, many expressing a defiant mood, stockpiled food.

A Palestinian security source, confirming that Arafat had ordered the arrest of the 14 Hamas activists, said the possible Israeli military action is hampering the crackdown.

"How can I arrest anyone when I have to prepare for an Israeli incursion?" the source said.