An Israeli mayor has imposed a partial ban on employing Arab workers in his city in a sign of mounting security concerns after a surge in deadly Palestinian attacks.

A Palestinian teen was abducted and killed, Palestinians said, accusing Israeli settlers of carrying out a revenge attack for the deaths of three Israeli youths.

An Iranian man wounded by an explosion in Bangkok lobbed a grenade at police that rebounded and blew off his leg in a series of blasts Israel said were an attempted terrorist attack by Iran.

GAZA militants bombarded southern Israel with rockets and mortars yesterday, drawing retaliatory Israeli air strikes in an escalation of the worst hostilities in the area since Israel went to war in the Palestinian territory two years ago.