It was not clear how or if Prime Minister Sharon would respond militarily to the attack. He canceled his afternoon plans in favor of an afternoon conference with Defense Minister Ben-Eliezer, but no operative decisions were announced. There were also conflicting reports as to whether Israel would continue easing restrictions on the Arab population. Education Minister Limor Livnat said that Foreign Minister Peres must stop his contacts with PA figures, as the PA "is fanning the flames of terrorism." MK Tzvi Hendel went further, saying that Israel must dismantle the PA: "The legitimacy given by the Sharon government to this gang of despicable murderers is that which fuels this most recent attack and others to come."



Just an hour before this afternoon's attack, Israel transferred 70 million shekels of frozen PA monies to the PA's new finance minister, Salam Fayad. Fayad, who has the respect of the international financial community, promised that the money would be used not for terrorism but to feed the hungry.