Two suicide bombings in Israel resulted in 32 fatalities. The Yahya Ayyash Units claimed responsibility, leading to international condemnation.
Palestinian President Yasser Arafat publicly denounced the attacks, while Israel warned of potential retaliation.
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A suicide bomber blew himself up outside Tel Aviv's biggest shopping centre, killing at least 11 other people and wounding more than 100. The victims included children dressed in costumes for a Jewish holiday.
Israel army radio said at least 18 people died in the attack outside the Dizengoff Center shopping mall. Forty-four innocents died in three previous bomb attacks in Israel. In a call to Israel radio, the Muslim militant group Hamas claimed responsibility for this bombing.
The explosion - the fourth Hamas suicide bombing in nine days - has sent the nation reeling and left the peace process with the Palestinians in shambles.
Tel Aviv Police Chief Gabi Last said the suicide bomber was on foot, crossing with shoppers at the intersection of King George and Dizengoff streets, one of the city's busiest.
Witnesses said the attacker set off the bomb next to a line of people waiting at a cash machine.
Children in costumes for the Purim holiday, which starts tonight, were among the casualties.