Hamas deployed armed militants in key parts of the Gaza Strip on Friday, one day after it accused rival Fatah forces of trying to assassinate Palestinian Prime Minister Ismail Haniyeh. The premier has threatened to "deal with" shots fired at his convoy at the Rafah crossing Thursday night.

The gunmen, carrying automatic rifles and rocket-propelled grenade launchers, were seen taking up positions along main Gaza City streets, according to witnesses.

The show of force followed an assault on Haniyeh's convoy upon his return from a fundraising tour of the Middle East. Haniyeh's bodyguard was killed in the shooting, and more than two dozen people - including Haniyeh's son, Abdel Salam, and his political adviser, Ahmed Yousef - were wounded.

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The incident deepened factional violence that has pushed the rival Hamas and Fatah parties closer to civil war. An official said that the son was not badly hurt.

Haniyeh was held up at the Rafah crossing between Egypt and Gaza for more than seven hours. Israel triggered the closure to prevent him from bringing in $35 million in suitcases of cash raised on a trip to Iran and other Muslim states. Haniyeh was allowed to enter Gaza on Thursday night after being forced to leave the funds in Egypt.

Arriving home around midnight, Haniyeh appeared furious over the gunfire at his convoy. "We know the party that shot directly at our cars, injuring some of the people with me... and we also know how to deal with this," he said, but did not explain further.

Hamas spokesman Fawzi Barhoum said the shooting was an attempt to assassinate Haniyeh, and held the Fatah-allied Presidential Guard responsible.

"The Presidential Guard controls the Palestinian side [of the border
terminal]. There are no other gunmen there. They are responsible for security of the border," Barhoum said. "We say there was a clear assassination attempt."

Wael Dahab, a spokesman for the Presidential Guard, said many gunmen were in the area and that it was difficult to control the situation. "Our men did not start the shooting, they did not shoot, and there were many people carrying guns," he said.

Palestinian Authority Chairman Mahmoud Abbas expressed regret for the shooting, according to the Palestinian news agency, WAFA.

About 50 gunmen greeted Haniyeh at his home in a refugee camp next to Gaza City, firing in the air and throwing candies.

Israel, which triggered the closure of the border to prevent Haniyeh's passage with the money, agreed Thursday evening to allow him to cross if he left the money in Egypt.

Vice Prime Minister Shimon Peres said the money must not be allowed in because it will be used to fund terror.

"It won't go to the hungry Gaza residents," he said. "It will go to the tunnel diggers, to the weapons smugglers."

The shooting late Thursday capped a turbulent day of intensifying factional
fighting between the Islamic militant Hamas and the Fatah movement of moderate
Palestinian President Mahmoud Abbas. Both sides have warned that they are
edging closer to civil war.

The latest round of Hamas-Fatah fighting erupted Monday with the brutal
killing of the three small children of a Fatah security official and continued Wednesday with the gangland-style execution of a Hamas judge.

Thursday's gunbattles at the border erupted in the afternoon after Hamas
militants, angry that Israel was preventing Haniyeh from returning, stormed the Rafah terminal.

The Presidential Guard, responsible for securing the area, opened fire,
setting off a gunfight. Terrified travelers ran for cover, some carrying their luggage. Crying women and children hid behind walls and taxis, while the European monitors who police the crossing fled. The rampage destroyed furniture and computer equipment inside the terminal and plunged the area into darkness.

Israel vows to tighten enforcement of PA boycott
Israel has vowed to tighten enforcement of the international boycott of the Palestinian Authority following Haniyeh's attempt to enter Gaza with the suitcases of cash.

Security sources in Israel said that Hamas officials who will attempt in the future to bypass the economic embargo on the Palestinian Authority will also not be allowed to cross back into the Gaza Strip.

Maria Telleria, spokeswoman for European monitors at the crossing, confirmed Haniyeh left the funds in Egypt. Hamas sources said the money had stayed in Egypt with two delegation officials, who would figure out what to do with it. Israel Radio said the money would be transferred Friday to the bank account of the Arab League in Cairo.

Israeli security sources said that the decision to close the border, which was made by Defense Minister Amir Peretz, was meant to stop the cash transfer, not to prevent Haniyeh's return.

The head of Egypt's intelligence service, Omar Suleiman, contacted Israeli officials in order to find a solution that would allow Haniyeh to return to the Strip.

Hamas has refused to meet the conditions for lifting an economic boycott imposed by the international community in the wake of its January election win, namely recognizing Israel, renouncing violence and accepting previously signed interim peace agreements.

In Washington, State Department spokesman Sean McCormack said Haniyeh's attempt to take the cash into Gaza "flies in the face of the will of the international community in terms of the rules that it has laid down."