The latest US Middle East peace drive was dealt a fresh blow when a Palestinian suicide bomber blew himself up on an intercity bus in northern Israel, killing three people.
The attack last night occurred as US envoy Mr Anthony Zinni met Palestinian security officials to discuss ways to end 14 months of bloodshed. "These vicious terror attacks must stop now if we are to create the environment that leads to peace," Mr Zinni said.
Survivors of the bus bombing reported seeing several people hugging the bomber at a bus stop before he boarded and blew himself up seven minutes later.
Before departing for the United States, Prime Minister Mr Ariel Sharon said he held Palestinian President Mr Yasser Arafat "directly responsible" for the latest attacks.
Mr Sharon said he had consulted security officials after the attack and ordered the army "to act against the terrorists whether they are part of the Palestinian Authority or other terror organisations which are launched by and co-ordinate with Arafat's forces".
Mr Sharon is to meet President Bush in Washington on Monday. Mr Bush has called on Mr Arafat to rein in Palestinian militants.
The Palestinian Authority strongly condemned the bombing. It said it was "working in its full capacity to put an end to all sorts of attacks against Israeli civilians" and had instructed Palestinian security agencies to "chase the perpetrators and bring them to justice".
The Authority also called on Israel "to stop its assaults and to stop assassinations which only increases tension".
An unofficial armed faction of Mr Arafat's Fatah organisation said in a statement faxed to Reutersit was responsible for the attack, but its claim could not be immediately verified.