Israel has vowed to tighten enforcement of the internatioanl boycott of the Palestinian Authority after Palestinian Prime Minister Ismail Haniyeh yesterday tried to enter the Gaza Strip with suitcases of cash. In a compromise solution, Haniyeh was allowed to enter through the Rafah crossing last night following a delay of more than seven hours. However, Haniyeh was forced to leave behind more than $30 million in cash contributions to Hamas from Iran and other Arab states he visited on a tour of friendly countries.

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.

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The crisis yesterday resulted in violent outbursts of Hamas supporters, and 15 Palestinians were injured in a gun battle with Egyptian security forces along the border with Sinai.

The Defense Ministry in Israel learned from American sources yesterday that Haniyeh intended to cross into the Gaza Strip with large sums of cash. Defense Minister Amir Peretz decided to order the Rafah crossing closed to prevent Haniyeh's entry into the PA.

Security sources said yesterday that the Israeli effort was aimed at blocking the transfer of funds and was not designed to delay Haniyeh.

According to a request from Peretz, the European monitors of the Rafah crossing left their post and the facility was closed. At the same time, intensive contacts with Egyptian officials took place, and also between Israel and the Palestinians, in an effort to bring an end to the crisis.

Several hours later a compromise solution was found, in which Haniyeh would leave the bags of money in the custody of two of his aides, and he would cross into Gaza.

When he crossed into the Gaza Strip at 10:30 P.M., Haniyeh was welcomed as a hero by a crowd of Hamas supporters.

Security sources said Israel was satisfied with the compromise, but also stated that henceforth they will pay greater attention to preventing the smuggling of funds into the Gaza Strip.

There is growing concern in the defense establishment over the increased role of Iran in the developments in the Palestinian Authority and that funds from Tehran are enabling Hamas to bypass the international embargo on its government.

In the end, the compromise was achieved through a series of telephone calls between the offices of Prime Minister Ehud Olmert, Defense Minister Amir Peretz, and Egyptian Intelligence Chief Omar Suleiman. The United States was also directly involved in the exchanges and played a role in both blocking Haniyeh's entrance and also in formulating the compromise.

The crisis led to serious violence in the strip, mostly near Rafah. At about 4 P.M., hundreds of Palestinians, including dozens of armed Hamas militants, broke into the Rafah crossing point. A gun battle ensued with members of the Presidential Security Force, responsible for security at the crossing, and three Hamas militants were injured.

Using explosives, Hamas militants opened a hole in the fence separating Egypt from the Gaza Strip, and Egyptian security forces tried to prevent hundreds of Palestinians from crossing to Sinai. As a result of the exchange of gunfire with the Egyptians, 15 Palestinians were injured.