Israel struck back with missiles at Gaza Strip militants Monday after five Israeli troops were killed in a resurgence of violence that has dented hopes of peace after Yasser Arafat's death. 

The deadliest attack since Arafat died a month ago underlined the challenge facing moderate Palestinian leader Mahmoud Abbas, who is one of the front runners in a January 9 election.

Israeli helicopters fired eight missiles at targets in Gaza City, cutting off electricity when they hit a generator. Another of the buildings hit was a metal foundry, which the army said was used to make weapons. There were no reports of casualties.

Hours later, Israeli troops in the West Bank city of Nablus killed a gunman from Islamic militant group Hamas -- one of the factions behind Sunday's attack on an Israeli military outpost at the border between Gaza and Egypt.

Israel Radio said top army officers had agreed to a major military response in Gaza that would be launched in coming days.

Israeli Prime Minister Ariel Sharon said any future talks with Palestinian leaders would depend on a halt to attacks.

"Any development depends on the Palestinian leadership and its actions," he told visiting members of the US Congress in Jerusalem. "We want to move forward towards peace, but at the moment we do not see any change among the Palestinians."

Growing violence in Gaza has dealt a blow to optimists who thought Arafat's death could usher in calm to end a four-year-old uprising and bring peace to the Middle East after decades of conflict.

Militants have stepped up attacks in Gaza ahead of a planned Israeli withdrawal from the occupied strip next year, hoping to claim a pullout as a victory. The army aims to smash them first.

Sunday's carefully planned attack on the Israeli post was the army's heaviest loss in seven months. Militants burrowed underneath and set off a 1,500-kilogram bomb, turning buildings to rubble and killing five soldiers of a Bedouin Arab unit.

Israel closed the Rafah border with Egypt -- the only real access to the outside world for residents of fenced-in Gaza, who are only very rarely allowed to cross into Israel.

Meanwhile, well informed Palestinian sources reported yesterday that a senior Egyptian delegation will visit Gaza in mid-January to discuss security matters in the wake of a planned Israeli pullout from the area.

The sources said Egyptian diplomats are holding meetings with Islamic and national Palestinian factions in Gaza to prepare for the January meeting.

They added that the security delegation will also meet Israeli Government officials to discuss the withdrawal and coordinate moves between the two sides.

(China Daily December 14, 2004)