Israel targets all militant leaders

JERUSALEM - Israel says all Palestinian militant leaders are "in its sights", one day after killing Hamas leader Ahmed Yassin in an attack that has provoked Palestinian vows of revenge.

Israeli Prime Minister Ariel Sharon and top aides approved the order to target all top militants after the wheelchair-bound cleric was assassinated in a missile strike outside a Gaza mosque on Monday, security sources said.

"Everyone is in our sights," Internal Security Minister Tsahi Hanegbi told reporters on Tuesday. "There is no immunity to anyone. And that means anyone to the last person," he said.

Israeli forces went on high alert to prevent revenge attacks for Yassin's death. Previous assassinations triggered waves of suicide bombings on buses and cafes that killed scores of Israelis.

Hamas has pledged to hit the Jewish state with unprecedented ferocity to avenge Yassin, a co-founder of the Islamic fundamentalist group.

"Hamas's reaction will be stronger, harsher and continuous to match the great crime Sharon has committed against our organisation," senior Hamas leader Mahmoud al-Zahar said in Gaza City.

Hamas, sworn to destroy Israel, said it did not plan to change its strategy by carrying out attacks in other parts of the world. But fears grew that other Arab or Muslim groups might do so in outrage at Yassin's killing.

A statement purporting to come from an al-Qaeda linked group and published on an Islamist internet site vowed to attack Israel's ally the United States, which unlike many countries did not condemn the assassination. The Abu Hafs al-Masri Brigade claimed responsibility for the Madrid attack on March 11.

MARKETS PLUNGE

US stocks and the dollar plunged as news of Yassin's death added to market fears. Sentiment remained fragile on Tuesday.

"The world is clearly a very unsettled and dangerous place and that's demoralising to investors," said Hugh Johnson, chief investment officer at First Albany Corporation

The European Union and UN Secretary General Kofi Annan denounced the attack on Yassin, which left his wheelchair smashed in a pool of blood. Seven others died in the attack.

Israel stepped up such strikes after suicide bombers killed 10 people at the port of Ashdod last week. Sharon has ruled out peace talks with the Palestinians until attacks on Israelis stop.

Some analysts predicted that instead of crushing Hamas, Yassin's death would help recruit a new wave of fundamentalists at the expense of Yasser Arafat's more moderate Palestinian Authority, which seeks a state in the West Bank and Gaza.

Security sources said Arafat, long accused by Israel of fuelling violence, was not on the list of leaders to be targeted immediately. Arafat denies encouraging attacks on Israel.

Polls showed about 60 per cent of Israelis approved of Yassin's assassination, but over 80 per cent thought it would mean more militant attacks. Many Israelis steered clear of crowded places on Tuesday. Embassies abroad were told to tighten security.

Shops were shuttered in Gaza and the West Bank on Tuesday in a sign of mourning. Thousands of mourners streamed into Gaza's main sports stadium as a booming voice on loudspeakers called for revenge.

The killing of Yassin appeared to be part of Sharon's bid to smash the most potent Palestinian militant group to prevent it from claiming victory if he goes ahead with a planned withdrawal of troops and settlers from Gaza.

Under a go-it-alone plan if a US-backed peace "road map" remains stalled amid violence, Sharon has also threatened to draw a "security line" in the West Bank that would leave the Palestinians with less land than they seek for a state.

- REUTERS