Israeli army on standby

Israeli Prime Minister Ehud Olmert said yesterday he had put the army on standby for a major offensive against Palestinian militants in Gaza as officials tried to secure the release of a kidnapped soldier.

Mr Olmert warned of a "comprehensive and protracted operation" after a raid into Israel on Sunday by militants including members of the ruling Hamas movement. The gunmen killed two soldiers and carried off a third. Two attackers were killed.

Israel has vowed reprisals that could include the re-invasion of Gaza, a coastal territory it quit last year after 38 years of occupation, or the assassination of Hamas leaders.

Troops and armour have been massing on Gaza's borders.

"Let it be clear: We will reach everyone, no matter where they are, and they know it," Mr Olmert said in a speech in Jerusalem. "There will not be immunity for anyone."

Top security officials are expected to meet again on Tuesday - a deadline set by Mr Olmert's inner cabinet - to discuss the military options if Corporal Gilad Shalit, 19, a conscript tank gunner, remains in captivity.

"The coming hours are critical," Foreign Minister Tzipi Livni said at a meeting with some 60 foreign ambassadors.

Palestinian security officials said there were negotiations with a group of gunmen that claimed responsibility for the border raid, although they have not confirmed holding Corporal Shalit.

"We are continuing our efforts to release the kidnapped soldier," one mediator said on condition of anonymity. "As of now, we have been told that the soldier is fine."

Mr Olmert held both Hamas and President Mahmoud Abbas responsible for the raid, dashing any chance Israel could revive peacemaking with the moderate leader and circumvent the hardline Palestinian government with which he shares power.

"We hold Mr Abu Mazen (Abbas) responsible. He holds ultimate responsibility for what goes on," Justice Minister Haim Ramon told Israel Radio.

Hamas dismissed Mr Olmert's tough talk.

"Such threats do not frighten us. We warn against enlarging the Israeli escalation because it will lead to more reactions by Palestinian parties," said Hamas spokesman Sami Abu Zuhri.