Car bomb attack kills two as Palestinians hit back

A huge car bomb killed two people and wounded at least 35 in Israel's heartland yesterday less than 48 hours after the state tried to bomb the Palestinians into submission with the biggest air attack of the conflict.

A huge car bomb killed two people and wounded at least 35 in Israel's heartland yesterday less than 48 hours after the state tried to bomb the Palestinians into submission with the biggest air attack of the conflict.

The bomb - the second big attack inside the 1967 Green Line within three weeks - detonated during rush hour in the middle of Hadera, a blue-collar town on the Mediterranean coast, 30 miles north of Tel Aviv. A car packed with explosives blew up next to a crowded bus, sending it hurtling through a shop window, and setting neighbouring shops on fire.

Rescue teams struggled through the twisted wreckage to free wounded passengers. Hospital officials said at least 35 people were hurt. Some had lost limbs, witnesses said.

Little of the car remained beyond its steering column. As the news spread, angry right-wing demonstrators gathered in Jerusalem to demand an even tougher crackdown.

No one claimed responsibility, but Israel said it suspected Islamic militants from Hamas, who have carried out bus bombings in the past. The group's military wing had reportedly issued a statement vowing to bring death to every Israeli home.

The Palestinian Authority denied accusations, made immediately after the bomb by Ehud Barak, the Prime Minister, that Yasser Arafat, the authority's leader, was ultimately responsible. Mr Barak later called an emergency meeting of his security cabinet.