Top Palestinian Fugitives Killed

Israeli Missiles Destroy Their Car Near Gaza Refugee Camp

(CBS/AP) 
Military officials said the main target of the attack was Madhoun.

Hamas and Al Aqsa, a violent offshoot of Abbas' ruling Fatah movement, threatened revenge. "This is an open war," said Hamas spokesman Mushir al-Masri. "They (the Israelis) are going to pay a heavy price for their crimes."

The airstrikes came on the eve of Eid al-Fitr, a major Muslim holiday marking the end of the fasting month of Ramadan. It was not clear whether the proximity of the holiday would temper the militants' response, amid concern the Palestinian public would blame them, at least in part, for ruining the celebrations by inviting Israeli retaliation.

Hamas and Al Aqsa did not say an informal 9-month-old truce was off, but have insisted on the right to respond to Israeli strikes, a position Abbas has dismissed as unacceptable. Since the truce deal, Hamas and Al Aqsa have refrained from carrying out attacks in Israel, while Islamic Jihad has been responsible for four suicide attacks.

International mediators, meanwhile, tried to wrap up a deal on reopening the Rafah terminal on the Gaza-Egypt border, the Gazans' gate to the world. Israel closed Rafah before withdrawing, and Abbas agreed he would only reopen the border with Israeli agreement.

Israel's Security Cabinet agreed Tuesday to deploy European inspectors to replace Israeli border personnel, who had controlled Palestinian movement in and out of Gaza since capturing the territory in the 1967 Mideast war. However, Israel and the Palestinians disagree over how much authority the inspectors should have — the Palestinians consider them to be advisers, while Israel wants them to be in charge.

Only Palestinians and foreigners with special status — VIPs, business people, aid workers — will be allowed to pass through Rafah for in the short term.

Israel wants to be able to monitor Rafah traffic via closed-circuit television, a demand the Palestinians reject.

"The third party is there for a reason, to monitor that we carry out our obligations," said Palestinian negotiator Saeb Erekat. "The Israelis have left ... There should be no camera linkage to Israel."

Israel, meanwhile, would operate an alternate crossing, Kerem Shalom, several miles away at the junction point between Egypt, Gaza and Israel. The crossing would handle goods and foreign tourists entering Gaza.

Palestinians say outgoing goods should move through Rafah, not Kerem Shalom — another point of dispute. Israel insists that all goods go through Kerem Shalom.

A reopening of the border could give Abbas a badly needed boost as he heads into Jan. 25 parliament elections. Hamas is expected to pose a strong challenge, and until now, Gazans have seen few real benefits from the Israeli departure.