Fatah gunmen threatened on Tuesday to kill leaders of the governing Hamas group, escalating a power struggle marked by the worst internal Palestinian violence since the Palestinian Authority was created in 1994.

Twelve Palestinians have been killed and more than 100 wounded in two days of fighting between rival forces from Mahmoud Abbas's Fatah faction and Hamas in the Gaza Strip and the occupied West Bank.

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Al-Aqsa Martyrs Brigades, an armed wing of Fatah, said it held Hamas's Damascus-based political chief Khaled Meshaal, Interior Minister Saeed Seyam and senior Interior Ministry official Youssef al-Zahar responsible for the deaths.

"We in al-Aqsa announce, with all might and frankness, the ruling of the people in the homeland and in the diaspora, to execute the head of the sedition, Khaled Meshaal, Saeed Seyam and Youssef al-Zahar, and we will execute this ruling so those filthy people can be made an example," a statement said.

Since Sunday, more than 120 Palestinians have been injured in the heavy exchanges of fire in the territories.

Meshal was the target of a failed Israeli assassination attempt in Amman the late 1990s, an incident which severely strained relations with Jordan.

On Tuesday, gunmen allied with Fatah forced the closure of several schools throughout central Gaza, telling children and teachers to leave and saying the education process must be stopped. They did not explain why they closed the schools.

Fatah gunmen also blocked a major intersection in central Gaza on Tuesday, shouting "Down, down with Hamas," burning tires and garbage dumpsters and shooting in the air.

Officials of the two sides traded verbal barbs on Tuesday. Fatah official Sufyan Abu Zaida urged a new direction for the PA government, either through new elections or a unity government. "The failure of Hamas to deliver the political and diplomatic 'goods,' is what led to this a situation, and that is the danger," he told Israel Radio.

"Elections are the practical thing now. The step that can change the situation is a change in approach on the part of Hamas, a more pragmatic approach, which can enable a Palestinian government of national unity."

Hamas, meanwhile, stood firm on its refusaln to recognize Israel and renounce violence, key international demands for the renewal of aid to the cash-starved Authority.

Violence erupted on Sunday
Violence erupted between the sides on Sunday, when the 3,500-strong Hamas militia confronted members of the Fatah-dominated security forces, who were protesting the government's inability to pay their wages.

Two people were killed Monday night in clashes in Rafah, in the southern Gaza Strip, and 15 others were injured. One of the men was identified as Aiman Abu Jazar.

Another Palestinian died after he succumbed to his injuries in Jericho, in the West Bank.

In a marked escalation of rhetoric, the Al-Aqsa Martyrs Brigades, an armed wing of the Fatah faction, threatened for the first time early Tuesday morning to kill Hamas leaders, including Damascus-based political chief Khaled Meshal.

In a statement sent to Reuters, the Al-Aqsa Martyrs Brigades said it held Meshal, Palestinian Interior Minister Saeed Seyam and senior Interior Ministry official Youssef al-Zahar responsible for the deaths.

"We in Al-Aqsa announce, with all might and frankness, the ruling of the people in the homeland and in the diaspora, to execute the head of the sedition, Khaled Meshal, Saeed Seyam and Youssef al-Zahar, and we will execute this ruling so those filthy people can be made an example," the statement said.

Hamas legislator Mushir al-Masri said Al-Aqsa was "pouring oil on the fire" between the rival groups. He said Hamas would "not show mercy" if any of its leaders were targeted by what he called "the leaders of the internal coup".

A spokesman for the Al-Aqsa Martyrs Brigades in Gaza declined to say whether the statement represented the views of the entire group or certain factions.

On Sunday, the day the clashes began, nine Palestinians were killed and 105 were injured.

The clashes began after Interior Minister Saeed Sayem ordered Hamas security forces to disperse Fatah-affiliated security forces that were protesting in the Gaza Strip.

The Hamas militiamen tried to disperse the Fatah gunmen in Khan Yunis by force, resulting in heavy exchanges of fire.

At the same time, Hamas forces surrounded the home of an officer in the Preventive Security apparatus, a predominantly Fatah force, and more fighting ensued.

In retaliation, Fatah supporters attacked Hamas offices throughout the West Bank, including the prime minister's offices in Ramallah, and torched them. The car of Education Minister Nasser al-Shaer was also destroyed.

Fatah supporters also tried to set the Palestinian parliament on fire, but failed.

In Nablus, Hamas and Fatah supporters exchanged fire into the night.

At about midnight on Sunday, Abbas of Fatah and Palestinian Prime Minister Ismail Haniyeh of Hamas spoke by telephone. Haniyeh issued a call to all Palestinians to exercise restraint, and Hamas forces later pulled back to previously-held positions.