HIGHLIGHTS: Isreal's so-called Inner Security Cabinet Mulls Response||Gaza Strip Braces for Possible Israeli Assault||Talks to Resolve Standoff in Bethlehem Resume||STORY: Israeli Prime Minister Ariel Sharon returned Wednesday from a trip to the United States which he cut short following a Palestinian bombing, and convened his security cabinet to discuss a response. Government officials confirmed he had begun talks with his inner security cabinet after landing at Tel Aviv's Ben-Gurion airport but gave no other details

Palestinians in the Gaza Strip braced for the possibility of an armed assault after Israeli media reported that the bomber was believed to have come from Gaza.

A suspected Palestinian bomber was badly wounded a few hours later when explosives he was carrying blew up prematurely in northern Israel. No one else was hurt.

TALKS TO RESOLVE STANDOFF AT BETHLEHEM RESUME

The bombing initially dented hopes of a breakthrough to end an armed standoff at the Church of the Nativity in Bethlehem, where Palestinian militants have been holed up for more than five weeks, surrounded by troops and tanks. . (Read photo caption)

But negotiations resumed, renewing speculation that a deal was near for the departure of civilians who are also in the church, and the deportation of some of the militants.

ARAFAT PLEDGES TO FIGHT TERRORISM AGAINST PALESTINIAN & ISRAELI CIVILIANS

At the same time, Palestinian President Yasser Arafat, under pressure to crack down on militants following the bombing, Wednesday ordered Palestinian security forces to foil any attempt to attack Israeli civilians.

His order came after a Palestinian the bomber killed at least 15 people at a billiards club in Rishon Letzion, south of Tel Aviv, Tuesday night.

The United States welcomed Arafat's reaction as "steps in the right direction."

PHOTO CAPTION

Israeli occupation soldiers patrol the narrow alleyways of the Old City of the West Bank town of Bethlehem near Manger Square and the Church of Nativity, Wednesday, May 8, 2002. A five-week standoff at the church dragged on Wednesday, despite an agreement that 13 suspected Palestinian militants holed up in the shrine would be deported by Israel. (AP Photo/Greg Baker)
- May 08 11:36 AM ET