Enraged Jewish settlers clash with Palestinians in Gaza

JEWISH settlers enraged by a clash with Israeli troops near a settlement turned on Palestinians, sparking a violent melee that left at least three people wounded, including one Palestinian in a critical condition.

Palestinians responded by hurling rocks at the settlers, and soldiers fired in the air to separate the sides, the army said. The settlers had been holed up in an abandoned Palestinian home in Gaza, and the army declared the area a closed military zone. Troops prepared to move in to evict the Jewish squatters, witnesses said.

In Israel, a planned nationwide protest fizzled out after thousands of police were out in force to keep highways open. Protesters blocked the entrance to Jerusalem, a highway near Tel Aviv and a Haifa intersection, but the actions were no more than briefly inconvenient to motorists - falling short of pullout opponents' hopes.

Earlier, demonstrators managed to briefly block the main Jerusalem-Tel Aviv highway when they threw oil and nails on the road.

The violence drew sharp condemnation from Prime Minister Ariel Sharon, who called on authorities to use an "iron fist" against extremists who he said are threatening to divide the country. He also said hardline rabbis who urge their followers to resist the evacuation should be punished.

Israel plans to withdraw from Gaza and four small West Bank settlements in mid-August, uprooting about 9,000 Jewish settlers from their homes. While mainstream settler groups say they will resist only through civil disobedience, authorities fear some extremists could turn violent.

The clash near the Shirat Hayam settlement erupted shortly after Israeli soldiers tried to remove about 20 young settlers who holed up in an abandoned Palestinian house earlier this week. The settlers set up the outpost after troops demolished 11 nearby buildings that the army said were going to be used as centres of resistance during the Gaza pullout.

Dozens of Jewish youths exchanged blows with soldiers, and troops dragged several youths through the sand into a waiting army vehicle. Police arrested at least eight people, officials said.

Following the incident, settlers moved outside and headed toward the nearby Palestinian area of al-Mawasi.

"They were throwing stones, destroying our houses," said Ahmed Laham, a Palestinian resident.

An Associated Press reporter saw group of settlers beat a Palestinian, leaving the man lying motionless on the ground. Moments later, the man was seen getting to his feet.

Hospital officials said a Palestinian was critically wounded after being hit in the head by stones. The army said one soldier and one settler were slightly wounded.

Also yesterday, police said they had arrested a number of opponents of the withdrawal who were planning to disrupt water and electricity supplies.