The founder and spiritual leader of the Palestinian group Hamas, Sheikh Ahmed Yassin, was on Monday killed in an Israeli air strike as he was leaving a mosque in Gaza city.
Israeli helicopters fired three missiles as the wheelchair-bound Yassin and his bodyguards left a mosque near his house. Seven others were killed and sixteen were wounded, including two of Yassin's sons, CNN said.
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It narrowly missed him in September 2003 when an Israeli warplane dropped a bomb on a building where he and other Hamas leaders were meeting.
Following his death, thousands of Palestinians took to the streets of Gaza and Hamas said Israeli Prime Minister Ariel Sharon had "opened the gates of hell".
"The battle is open and war between us and them is open. They are the killers of prophets and today they killed an Islamic symbol," senior Hamas political leader Abdul Aziz al-Rantissi was quoted as saying.
Justifying the attack the Israeli Army said, "The Hamas leadership, led by Yassin, was directly involved in planning, directing and launching terror attacksÂ…"
Israeli Deputy Defence Minister Zeev Boim said Yassin had been behind a terror network in Gaza and was "marked for death".
Israeli forces went on an alert and the army imposed a full closure on the West Bank and Gaza Strip after Yassin's killing. The police also went on alert inside Israel, fearing reprisals.
Palestinian Prime Minister Ahmed Qurei called the attack a "dangerous, cowardly act".
Palestinian leader Yaseer Arafat said in a statement, "The Palestinian leadership condemns the crime of assassination of the hero leader Sheikh Ahmed Yassin and the brothers who were assassinated with him.
"Israel has exceeded all red lines with this cheap and dirty crime."Â
The attack came two weeks after the inner security cabinet led by Sharon declared an all out war against the militant factions, warning that even their senior leaders would be targeted, and a day after Defence Minister Shaul Mofaz told the cabinet the army had prepared a plan to deal with terror.
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