Israel said its forces withdrew today to the edge of one of two refugee camps it raided on a hunt for Palestinian militants but insisted it would go wherever it saw fit to track down killers of its citizens.
A military statement said troops had pulled back from inside the camp in Jenin, in the northern West Bank, but were still on its outskirts "in control positions" after seizing explosives and arresting a number of suspects for questioning.
An army spokesman said military forces remained inside a second, larger refugee camp at Balata, outside the Palestinian-ruled city of Nablus.
At least 20 Palestinians, civilians as well as police and gunmen, and two Israeli soldiers have been killed in fierce fighting since the soldiers, backed by tanks and helicopters, launched the raids early on Thursday.
The army gave a higher toll of 30 armed Palestinians killed and 200 wounded at the camps.
Palestinian sources said most of the suspects on Israel's wanted list had escaped to other hiding places from the dragnet, which has threatened a new Saudi Middle East peace initiative and drawn stiff international condemnation.
"They only killed innocent people and policemen. They didn't arrest even one wanted militant," said Mr Usama Najar, a 30-year-old fighter from the Fatah-linked Al Aqsa Martyrs Brigades at the Jenin camp who said he was wanted by Israel.
The European Union today joined a call from United Nations Secretary General Mr Kofi Annan for an immediate end to the operations, which France has branded "acts of war."
The United Nations Commissioner for Human Rights Ms Mary Robinson, said yesterday that the raids on the UN-run camps, home to 32,000 Palestinians, flouted international humanitarian law.
The United States, Israel's foremost ally, has urged "utmost restraint" but stopped short of calling on Israel to withdraw it forces, saying it respects its right to self-defence.
The army insisted it was not targeting civilians but made clear it would not be stopped from denying militants safe haven.
"The Israeli army will continue to operate every place it finds fit in order to protect the safety of Israeli civilians and soldiers," it said in a statement.