The attack prompted the State Department to issue a worldwide alert, saying it was extremely concerned about the possibility of violence against U.S. citizens and interests. Americans were urged to maintain "a high level of vigilance."

In a parallel travel warning, Americans were advised to defer all travel to Israel, the West Bank and Gaza, and those already there were told to stay at home or get to a safe location. No one has claimed responsibility for the bombing, Defense Secretary William Cohen told a Pentagon news conference.

But yesterday's violence in the Middle East appears to end hopes that Israel and the Palestinians could soon negotiate a truce and bring an end to 15 days of bloodshed that have left at least 95 people dead--most of them Palestinians and Israeli Arabs.

Neither Arafat nor Israeli Prime Minister Ehud Barak seemed intent on peace yesterday.

A smiling, defiant Arafat was cheered by hundreds of Palestinians as he toured the Gaza sites hit by rockets.

"Our people don't care, and don't hesitate to continue their march to Jerusalem, their capital of the independent Palestinian state," he said.

Barak said he held Arafat indirectly responsible for the killing of the soldiers, and said Israel would hunt down those involved.