The military wing of Hamas vowed to avenge the killing of Mahmound Abu Hanoud, who headed Israel's most wanted list, and two of his closest confederates Friday night. The three were killed near the village of Kfar Farah, close to the West Bank city of Nablus, after an IDF helicopter fired missiles on the taxi in which they were riding.

The other two were identified as Mahmoun Rashid Hashaika, and his brother, Ahmed. Palestinian sources said that 20,000 Palestinians attended the funeral procession Saturday, and tens of thousands more demonstrated in Gaza.

Palestinians chanted "Sharon, wait, revenge is coming soon," and the Hamas leader in Nablus, Teissir Imran, told the crowd that "Sharon opened the door to hell, for himself and his people."

Hamas, in a published declaration, threatened that "revenge will be ours soon, powerfully and in Tel Aviv." A senior Hamas official in Gaza, Abdel Aziz Rantissi, also warned that Hamas would respond swiftly to the killing. "Experience shows that the organization has always responded to Israel's crimes and always strikes back. God willing, there will be a painful response against the enemy."

Israeli Prime Minister Ariel Sharon's office published a statement Friday night claimed credit for the killing and said that Hanoud had been involved in planning a long series of terror attacks against Israelis, including a number of recent suicide attacks. Hanoud is held responsible for this year's suicide bombings at the Dolphinarium Disco in Tel Aviv and in the Sbarro Pizzeria in Jerusalem.

Israeli Foreign Minister Shimon Peres said Abu Hanoud was a "professional terrorist" responsible for the deaths of scores of Israelis, and that Israel was acting in self-defense.

Israel has tried to capture Abu Hanoud in the past. In August 2000, three Israeli undercover troops were killed by friendly fire in a failed attempt to arrest him in his home village of Assira al-Shamaliya near Nablus. Abu Hanoud fled and was taken into custody by the Palestinian Authority. Last May, he was injured when Israeli warplanes, retaliating for a suicide attack at a shopping mall in Israel, bombed the Nablus prison where he was being held. In both cases, Abu Hanoud was released by the Palestinian Authority.

Nabil Abu Rudeineh, a senior advisor to Palestinian Authority Chairman Yasser Arafat, claimed that "the escalation of violence that Israel has begun over the past few days has crossed all red lines." He accused Israel of attempting to sabotage U.S. mediation efforts, a new round of which is expected to begin this week.

Two mediators, Assistant Secretary of State William Burns and retired Marine Corps Gen. Anthony Zinni, are scheduled to arrive Monday in an attempt to revive a truce deal and peace talks.

Nablus governor Mahmoud al-Aloul said the killing was a "new crime" by the Israeli Prime Minister. "It is clear that Sharon insists on the continuation of his aggression and... in aborting all the attempts to cool down the conflict," he told Reuters.

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