Four Israeli settlers on West Bank killed in 'revenge' for shooting of nine Palestinians

Palestinian gunmen broke into an isolated Jewish settlement south of Hebron last night, killing four settlers and wounding about 10 others. Two of the wounded were said to be in serious condition in Jerusalem and Beersheba hospitals.

Israeli troops shot dead one of the assailants on the spot. The other escaped but was killed two hours later after the army launched a manhunt in neighbouring Arab communities. Three soldiers were wounded in this second exchange of fire.

The gunmen stormed the communal dining hall in Otniel at about 8pm when the 500 religious settlers were celebrating the Jewish Sabbath. Witnesses said they sprayed the hall with automatic fire.

Islamic Jihad claimed responsibility for the attack, which it said was in revenge for Israel's killing of nine West Bank and Gaza Palestinians on Thursday. A Damascus-based spokesman singled out Hamsa Abu Roub, a Jihad district commander shot dead in Qabatiya. He vowed that Israel would know no peace as long as it hunted Palestinians.

Israeli security sources suspected the Otniel raid was the work of the same squad that killed 12 soldiers and volunteer guards in an ambush in Hebron six weeks ago.

The army briefed Ariel Sharon, the Prime Minister, and his Defence Minister, Shaul Mofaz. Mr Sharon's spokesman, Ra'anan Gissin, dismissed Islamic Jihad's claim that last night's attack was motivated simply by revenge. The security services, he said, had received warnings of 40 attacks over the past week alone and had been arresting 10-15 wanted men a day.

"All the terrorist organisations are engaged in a competition to see who can carry out the most attacks. Most of them are frustrated but some terrorists slip through. We shall continue to bring them to justice and bring justice to them," he told The Independent.

Israel had enjoyed relative calm for a month, with no attacks in Israel or the West Bank. However, a rabbi was shot dead while driving in the Gaza Strip last Friday.

Israel lifted a curfew yesterday that the army imposed on Bethlehem on Thursday. A military spokesman said the security services had arrested two suspected militants in the town, where month-long restrictions were relaxed for two days over Christmas. Elsewhere on the West Bank, they picked up 10 wanted men.