A Palestinian died and another was injured in explosion in the Gaza Strip. The explosion occurred to the east of the town of Khan Yunes, in the southern Gaza Strip, where the dead man was named as Majdi Abu Shaluf, 22. Earlier reports from the same sources had claimed Shaluf died as a result of Israeli gunfire but a Palestinian security spokesman later said: "Shaluf was killed by an explosive device left behind by the Israeli army." The fate of a third man at the scene was not immediately known. The explosion occurred at 5:30 am in Khuzaa, near a security point separating the Gaza Strip and Israel and close to Palestinian police station, sources said. At around the same time, the Israelis said, an explosion was reported at the Sufa crossing point between the Strip and Israel, as a patrol passed by, but there were no reports of injuries. Two mortar shells and an anti-tank rocket were fired on a Jewish settlement in the Gaza Strip, while an Israeli patrol and a sentry post came under fire near the Ganei Tal settlement, near Khan Yunis. The Israelis returned fire. Around Rafah, near the Israeli-Egyptian border, an Israeli position was hit by a grenade and near Jenin, in the West Bank, a patrol and armed Palestinians exchanged fire. Also a Palestinian suspected of ordering a mortar attack on a Jewish settlement fired on a policeman who came to arrest him, the first show of resistance to Palestinian security forces enforcing a fledgling truce. Three people were injured in the shooting at Gaza's Beach Refugee Camp late Friday, a Palestinian police source said. It wasn't clear if the suspect was among the wounded, but he was taken into custody. The man, who was not identified, was one of a dozen people who have been arrested in Wednesday attack that injured four Israelis. Seven Fatah activists were arrested in Gaza on Wednesday and Thursday, marking the first time Palestinian security forces took action against Palestinians. Israel and the United States want the Palestinians to go further and disarm the groups, including Hamas and the Islamic Jihad, but Palestinian Prime Minister Mahmoud Abbas has rejected using force, fearing a civil war. In a meeting Friday, Islamic Jihad leaders urged Abbas to also make the release of Palestinian prisoners - especially women, children and those who've served long sentences - a high priority in his talks with Israeli officials, said Mohammed al-Hindi a leader of the group. Meanwhile, the Palestinian foreign minister, Nabil Shaath, said Friday that Palestinians could be ready to hold general elections by October if Israel withdraws from major population centers, but that Yasser Arafat will likely stand as the only major candidate for president. **PHOTO CAPTION*** Palestinian members of the Al-Aqsa Martyrs Brigades shout slogans during a rally in Gaza City to commemorate the death of Jihad al-Amarin, co-founder of the Brigades who was killed in a blast blamed on Israel last year. (AFP/file/Mahmud Hams)