March 23, 2004
By Megan Goldin

Photo: Students holding pictures of Hamas spiritual leader Sheik Ahmed Yassin during an organized demonstration on the city's parade grounds in San'a, Yemen, Tuesday, March 23, 2004. Many students left school early to gather and voice their anger at the killing of Yassin. With security tight, crowds surged forward to hear Yemen's president, Ali Abdullah Saleh, denounce the assassination and Israeli prime minister Ariel Sharon . (AP Photo/Bryant MacDougall)

JERUSALEM (Reuters) - Israel said all Palestinian militant leaders were "in its sights" Tuesday, one day after killing Hamas leader Ahmed Yassin in an attack that provoked vows of bloody revenge.

Israeli Prime Minister Ariel Sharon and top aides approved the order to target all senior militants after the wheelchair-bound cleric was assassinated in a missile strike outside a Gaza mosque Monday, security sources said.

"Everyone is in our sights," Internal Security Minister Tsahi Hanegbi told reporters. "There is no immunity to anyone."

Israel's army chief hinted that Palestinian President Yasser Arafat and Lebanese Hizbollah guerrilla leader Sheikh Hassan Nasrallah could end up on the hit list, though security sources said there was no immediate plan to kill either.

"I think that judging by their hysterical responses (to Yassin's assassination) it appears they realize it is getting closer to them," Gen. Moshe Yaalon told reporters.

Fearing attacks that Hamas has pledged to avenge Yassin, Israeli forces went on high alert. Previous assassinations triggered waves of suicide bombings on buses and cafes that killed scores of Israelis.

Hamas, sworn to destroy Israel, said it did not plan to change its strategy by carrying out attacks in other parts of the world. But fears grew that other Arab or Muslim groups might do so in outrage at Yassin's killing.

A statement purporting to come from an al-Qaeda linked group and published on an Islamist Internet site vowed to attack Israel's ally the United States, which unlike many countries did not condemn the assassination. The Abu Hafs al-Masri Brigade claimed responsibility for the Madrid attack on March 11.


GLOBAL FEARS

U.S. stocks and the dollar plunged as news of Yassin's death added to market fears. Sentiment remained fragile Tuesday.

"The world is clearly a very unsettled and dangerous place and that's demoralizing to investors," said Hugh Johnson, chief investment officer at First Albany Corp.

Israel stepped up strikes on militants after suicide bombers killed 10 people at Ashdod port last week. Sharon has ruled out peace talks with the Palestinians until attacks on Israelis stop.

Some analysts predicted that instead of crushing Hamas, Yassin's death would help recruit a new wave of fundamentalists at the expense of the more moderate Palestinian Authority , which seeks a state in the West Bank and the Gaza Strip .

Speaking in Gaza at mourning ceremonies for Yassin, Palestinian Prime Minister Ahmed Qurie called his killing an "ugly crime committed by the government of murderers, the government of Israel."

Thousands of mourners streamed into the main stadium as a booming voice on loudspeakers called for revenge. Shops remained shuttered in Gaza and the West Bank as a mark of respect.

Polls showed about 60 percent of Israelis approved of Yassin's assassination, but over 80 percent thought it would mean more militant attacks.

Many Israelis steered clear of crowded places Tuesday and embassies abroad were told to tighten security. But the head of military intelligence suggested militants could do no more than they were already doing to carry out attacks.

The killing of Yassin appeared to be part of Sharon's bid to smash the most potent Palestinian militant group to prevent it claiming victory if he goes ahead with a planned pullout of 7,500 settlers from Gaza, home to 1.3 million Palestinians.

Under a go-it-alone plan if a U.S.-backed peace "road map" remains stalled amid violence, Sharon has also threatened to draw a "security line" in the West Bank that would leave the Palestinians with less land than they seek for a state.

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