An unmanned terror boat loaded with explosives blew up near the Gaza coast Monday morning, apparently exploding prematurely.  Military spokesmen said that the Navy spotted the boat and observed it for approximately an hour before firing at it about 300 yards from the Northern Gaza coast. The artillery fire set off the explosion, according to IDF Chief of Staff Lt. Gen. Gabi Ashkenazi.

The Navy is investigating whether terrorists intended to use the boat to attack Israeli boats or a target on the coast.

Several hours earlier, Hamas leaders said they are temporarily refraining from staging terrorist attacks as a tactical maneuver but can easily do so whenever they want.

Arab fishing boats are a constant problem to the Navy and often sail into waters under Israeli sovereignty. Hamas and pro-Arab groups, such as Free Gaza, have declared that Israel has no legal control over the coastal area, where weapons smuggling is frequent. The organization and the IDF have issued totally contradictory statements several times over alleged Navy firing on fishing vessels.

Israel retained sovereignty over the air and sea at Gaza as a condition for the 2006 withdrawal from the Gaza region. The Free Gaza movement has challenged the Navy several times the past year with boats from Cyprus loaded with food and medicine. The government allowed most of the boats until Operation Cast Lead, when the Navy forced a Free Gaza boat to sail north to Lebanon.