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A suicide bomber blew himself up early on Wednesday killing at least 16 people and injuring dozens at a club in the Israeli town of Rishon Lezion, police and media reports said.
The attack at 0133 IST came shortly after Israeli Prime Minister Ariel Sharon began his meeting with United States President George Bush in Washington to discuss peace plans for West Asia.
Following the bombing, Sharon cut short his visit and headed back to Israel.
He also promised retaliation for the attack. "He who rises up to kill us, we will pre-empt it and kill him first," Sharon said before returning.
"The battle continues and will continue until all those who believe they can make gains through the use of terror will cease to exist," he said.
The blast occurred at the third floor of the Shpiel Club snooker hall, causing the ceiling to collapse and trapping people in a hall on an adjoining floor, medical sources said.
Some of the wounded were said to be trapped in the building.
"We know of an explosion in a building... a nightclub in which there were apparently a large number of people," Chaim Cohen, a police commander, was quoted as saying.
It was a "a huge explosion. I turned the corner and I saw the whole building go up before my eyes", a witness told Israel Radio.
Israeli television showed dozens of ambulances, medics, and fire tenders moving around the scene of the blast
In a message to Al Manar television station in Lebanon, radical Palestinian outfit Hamas claimed responsibility for the attack.
However, Mahmud Zahar, a Hamas spokesman in Gaza City, said he could not confirm the claim.
"We do not have any clear evidence or information except what we are seeing on TV. But if it is a martyrdom operation, it means that Israel has lost its war against the Palestinians and the Palestinian resistance has proved that it is capable of reaching the enemy everywhere," Ha'aretz newspaper reported Zahar as saying.
In a statement, Palestinian Authority Chairman Yasser Arafat condemned the attack "in the strongest possible terms".
"The Palestinian Authority will take every possible action if it proves that those behind this attack had anything to do, or were coming from, Palestinian areas... We don't condone the killing of the civilians, either Palestinians or Israelis," chief Palestinian negotiator Saeb Erakat said.
Israeli media reports said there was no security guard at the snooker hall's entrance, which was operating without a licence.
David Baker, an official at the prime minister's office, described the blast as yet another "murderous attack" against Israeli citizens. "It is clear that the Palestinian Authority has not given up its terror actions and has not given up its murderous path," he said.
Reports from Washington said Bush expressed "his disgust at this wanton taking of innocent life".
After his meeting with Sharon, Bush said he was sending Central Intelligence Agency Director George Tenet to West Asia to help build a unified Palestinian security force to fight terrorism.
Meanwhile, in Bethlehem, implementation of the Israeli-Palestinian deal to end the 36-day standoff at the Church of Nativity was delayed at the last minute on Tuesday when Italy refused to accept 13 of the Palestinian militants holed up inside the church.
As per the deal, of about 120 Palestinians holed up inside one of the holiest shrines of Christianity, 13 were to be deported to Italy, another 26 were to be transferred to Gaza Strip and the rest were to be released.
"We have reached an understanding to resolve the Church of the Nativity crisis," Israeli army spokesman Olivier Rafowicz told reporters in Bethlehem. "The implementation is being delayed because no country is willing to accept the terrorists," he said.
Italy said it could not grant exile to the gunmen because it had been kept in the dark and did not receive any official asylum request.
Secretary of State Colin Powell telephoned Italian Prime Minister Silvio Berlusconi twice on Tuesday to urge cooperation in resolving the stalemate. He was hopeful that Italy would accept at least some of the men, US state department spokesman Richard Boucher said in Washington.
"We are working with the parties, including with the Italian government, on the issues of the Church of Nativity in Bethlehem... We are hopeful the situation can be resolved," Boucher said.
PTI
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