Olmert vows to strike Hamas as Gaza fuel cut off
GAZA (Reuters) - The flow of fuel from Israel into the Gaza Strip came to a halt on Thursday, one day after Palestinian militants attacked a border terminal used to supply the Hamas-controlled territory.
Two Israeli civilians were killed in Wednesday's attack by militants on the border crossing at Nahal Oz, the only terminal for piping fuel to the Gaza Strip and its 1.5 million people.
Two Palestinian militants and two civilians were also killed when Israeli troops backed by tanks responded.
Israeli Prime Minister Ehud Olmert vowed Israel would strike Hamas in such a manner that the Islamist group "will not be able to continue to operate as it does today".
Olmert did not say how Israel would respond.
Hamas Islamists seized Gaza after routing forces loyal to President Mahmoud Abbas of Fatah in June.
A report issued by an Israeli think-tank on Thursday said Hamas was in the midst of a major arms build-up, with help from Iran and Syria, that included longer-range rockets and anti-tank weapons.
The Intelligence and Terrorism Information Center, whose members include former Israeli security officials, said Hamas could throw up to 20,000 fighters, some trained in Iran, into a campaign to try to repel a major Israeli ground assault.
Hamas has acknowledged the build-up but has not released details.
"Alongside the war on terror and Hamas, we will continue to hold a serious and responsible dialogue that can lead us to understandings with the Palestinian Authority under Abu Mazen (Abbas)," Olmert told lawmakers from his centrist Kadima party.
Olmert and Abbas, launched peace talks at a conference in Annapolis, Maryland in November with the goal of reaching a deal before U.S. President George W. Bush leaves office in January.
Olmert said it would be possible to reach "understandings" with the Palestinians this year that would lead to a future Palestinian state, but added, "I don't see any chance that we can implement an agreement in the coming period".
Abbas is seeking a full-fledged agreement by year's end.
GAZA ON HOLD
The European Union, which provides fuel to Gaza's lone power plant, said it did not pump any supplies on Thursday through Nahal Oz. An EU official said supplies were unlikely to resume before Sunday.
An EU official said the Israeli army has decided to review the "whole security set up and this could take a few days. Only then we will be in a position to resume" fuel supplies.
The official said the Gaza power plant had enough fuel on hand to last about a week.
"Gaza is on hold," said Bilal Abdel-Rahman, a father of two from Gaza City, citing the shortage of petrol.
Israel tightened its cordon of the Gaza Strip after the Hamas takeover, and before Wednesday's attack, had been allowing in only a fraction of the gasoline and diesel that Gaza normally consumes, said Mahmoud al-Khuzundar, head of the enclave's Fuel Suppliers' Association.
Khuzundar said the Hamas-controlled government in Gaza has been siphoning off nearly 30 percent of all incoming fuel before its distribution to petrol stations.
Israel accused Hamas authorities of not allowing the distribution of fuel that was pumped before the raid into tankers on the Palestinian side of Nahal Oz.
Palestinian distributors say they are on strike to protest against Israeli cutbacks in fuel supply.
With little fuel available, Gaza residents made due by putting off errands and by walking to work and school.
"Walking is healthy," a female university students told her colleague.
"I agree, but not to Nusseirat," her colleague said, referring to their school, 10 kilometers (6 miles), away.
(Additional reporting by Adam Entous and Ari Rabinovitch; Editing by Mary Gabriel)
