Israeli troops shot dead an Islamic Jihad commander today.
Palestinian security sources said Israeli troops killed Ahmed Radad, in an early morning raid in the city of Nablus.
Islamic Jihad had claimed responsibility for rocket fire from Gaza that wounded the baby and two other Israelis and series of recent suicide bombings against Israel.
Israel's army spokesman said two soldiers were wounded in the Nablus raid in a gun battle that erupted while the troops attempted to detain Radad (28) who was in a building.
He was the eighth gunman killed in a surge of attacks on militants ahead of the formation of a Palestinian government and an Israeli election.
The biggest flare-up of violence since Ehud Olmert took over as Israeli interim prime minister last month included a Palestinian stabbing that killed an Israeli woman on Sunday and a rocket strike from Gaza on Friday that wounded a baby.
After the two Palestinian attacks, Olmert pledged in a speech "to strike anyone who tries to carry out terrorist activity" - adopting a tough line as Hamas gears up to form a government and Israel prepares for its own poll on March 28th.
In a move that could further jeopardise any future peace efforts, a top Hamas leader said in Cairo the next Palestinian prime minister was very likely to be a member of the Islamic militant group, which is sworn to Israel's destruction.
Israel and the United States say they will not hold talks with members of Hamas, which trounced Palestinian President Mahmoud Abbas's Fatah faction in January 25th parliamentary elections.