Israel rules out military response to bombing

ISRAEL'S leaders held the Hamas-led Palestinian Authority responsible for the deadliest suicide bombing in 20 months but stopped short of branding it an "enemy entity" or ordering a large-scale military operation.

Interim Israeli Prime Minister Ehud Olmert and key cabinet ministers instead revoked the Israeli residency rights of three Hamas lawmakers living in Jerusalem.

Monday's blast, which killed nine other people and wounded dozens outside a packed Tel Aviv fast-food restaurant, was carried out by a bomber from the Islamic Jihad militant group.