Israel signals tough response to attack

Monday's attack by a 21-year-old militant from the Islamic Jihad faction, which killed nine other people at a crowded food stand in Tel Aviv, failed to elicit condemnation from its larger rival, hardline Islamists Hamas.

The organisation, branded a terrorist enterprise in the West, has snubbed massive international pressure to renounce violence and recognise Israel, seeing the EU and US halt direct aid to the cash-starved Palestinian Authority.

But the Israeli government, which has already slapped economic sanctions and travel embargoes on the Hamas government, united to blame its chief Palestinian enemy for the deadliest bombing in 20 months.

Government spokesman Ranaan Gissin raked Hamas over the coals for "the fact that they allow other terrorist organisations to carry out these horrendous terrorist attacks".

"We are in a war and we are taking all the necessary steps to defend ourselves like US troops are doing in Iraq," he said.