Israeli retaliation likely as Obama envoy holds talks

Israel warned yesterday of further retaliation for the killing of a soldier by Gaza militants, raising the prospect of more bloodshed as an envoy of US President Barack Obama sought to consolidate a ceasefire.

"Israel will respond very severely," an Israeli security source said. The Israeli air force carried out strikes during the night, but "we haven't seen it all," the source said.

"We will remain ready, with our finger on the trigger around the clock," Benjamin Ben-Eliezer of Israel's decision-making security Cabinet said on an Israeli television channel.

Prime Minister Ehud Olmert was quoted as telling senior officials on Tuesday that Israel's response would be "severe and disproportionate".

Defence Minister Ehud Barak said he had cancelled a trip to the United States "to closely follow these developments", adding: "The Israeli army is ready, as always."

Mr Obama's visiting Middle East envoy, former US Senator George Mitchell, said it was "of critical importance that the ceasefire be extended and consolidated" between Israel and Hamas-ruled Gaza.

Israel and Islamist Hamas rulers ordered separate ceasefires on January 18, when Israel ended a 22-day assault in the coastal territory, but violence on Tuesday has threatened the de facto truce.

A little-known Islamist group claimed a bomb attack which blew up an Israeli patrol jeep, killing one soldier and injuring three. The Hamas group defended the strike, citing the killing of two Palestinians by Israel last week. After the bombing, Israeli forces killed one Palestinian, identified by Gaza medical workers as a farmer. An Israeli air strike later seriously wounded a militant on a motorcycle.

Aircraft returned to southern Gaza overnight to bomb tunnels under the Gaza-Egypt border which were targeted aggressively during the offensive, but are being quickly repaired.