Israeli warplanes Monday attacked a Palestinian security headquarters for the second time in two days, responding to the deaths of two Israeli soldiers and the launch of a rocket by Palestinian extremists.

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At least five people were killed and more than 70 wounded in gun battles between Palestinian police and militant members of Hamas and Islamic Jihad. The violence comes as Hamas said it would suspend suicide attacks on Israeli targets.

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Both sides accepted in principle a peace agreement brokered by CIA director George Tenet.

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