Prime Minister Ehud Olmert reiterated during the weekly Sunday cabinet meeting Israel's warning that there is no immunity from IDF attacks for anyone involved in terrorism, regardless of their position.

Olmert added, however, that neither will Israel be sucked into a confrontation that exceeds parameters determined by the level of attacks by terrorists.

"We will not heed incitement and to anyone suggesting that I destroy entire neighborhoods, I say I will not allow any imbalanced operation that may damage Israel in the long run," he warned.  "Israel is neither a terrorist state nor a terrorist organization.