Israel accused Iran and Syria yesterday of planning and funding a suicide bombing in Tel Aviv that raised tension before next week's Palestinian election.
Meanwhile, Palestinian gunmen yesterday shot and wounded an official from a party running in the Palestinian legislative election, a spokesman for the candidate said, marking the first such attack ahead of the vote.
Thursday's bombing poses a challenge for interim Israeli Prime Minister Ehud Olmert, who assumed power after Ariel Sharon suffered a stroke, and Palestinian President Mahmoud Abbas, who said it was designed to sabotage the January 25 parliamentary poll.
Mr Sharon aide Raanan Gissin said Israel had "ample, concrete evidence" that the Tel Aviv bombing, for which the Islamic Jihad group claimed responsibility, was bankrolled from Tehran and planned in Damascus. The bombing injured 30 people.
Mr Gissin said he could not reveal the evidence. Israel has often made similar accusations, noting that Islamic Jihad has offices in Damascus. Mr Gissin's comments echoed similar accusations by Defence Minister Shaul Mofaz to Israeli media.
In a fax to Reuters, Iranian Foreign Ministry spokesman Hamid Reza Asefi rejected Mr Gissin's accusation as "baseless".
Israeli security officials have said the army would continue its West Bank raids aimed at detaining militants. Israel says Mr Abbas is unable or unwilling to disarm gunmen, as dictated by a US-backed peace "road map".
Mr Abbas said Israel's military activity in the West Bank has harmed efforts by his security forces to stop gunmen and curb lawlessness that has grown in the Palestinian territories ahead of the election.
"Every time we calm things down and maintain our control, Israel comes and sabotages (our efforts)," he told Palestinian radio, adding that his security forces would continue to work to maintain law and order in the West Bank and Gaza.
Thursday's bombing by Islamic Jihad, which is sworn to Israel's destruction, was the first in the Jewish state since an 11-month truce expired at the end of last year.