Israeli occupation troops killed seven Palestinians in a massive raid in southern Gaza on Friday, including two children, amid reports Palestinian prime minister Ahmed Qorei wants to quit amid a burgeoning power struggle. Up to 100 armoured vehicles supported by attack helicopters thrust deep into densely populated refugee camps around the southern Gaza Strip town of Rafah on the border with Egypt overnight, Palestinian security sources said. By dusk Friday, the death toll had risen to seven and 56 wounded with no end to raid in sight. "Operation Root Canal" was aimed at thwarting weapons smuggling by Palestinians through secret border tunnels, the Israeli army said. Two children, aged eight and 12, and a teenager were shot dead during the operation, Palestinian hospital sources said. Two of the others were killed when an Israeli helicopter fired a missile into the Ybna district. At least five houses were demolished and the electricity and water networks heavily damaged, witnesses and Palestinian security sources said. The raid sparked condemnation from the Palestinian Authority, with Palestinian leader Yasser Arafat's top adviser slamming it as a "war crime". "We strongly condemn these Israeli war crimes which are causing a human tragedy," said Nabil Abu Rudeina. "We ask the international community, the (Mideast) quartet and the UN Security Council to take immediate steps to stop the Israeli escalation ... especially in Rafah," he said. The latest flare-up provided a tense backdrop for Palestinian efforts to resolve a political crisis, which flared up Thursday amid reports that Qorei had tendered his resignation just two days after being sworn in. It was not immediately clear if the resignation was accepted, but Abu Rudeina said Arafat retained his confidence in Qorei and another senior source said the dispute would probably be resolved within 24 hours. **PHOTO CAPTION*** Palestinian Ibrahim Al Grenawi, 8 years, is treated in the Najar hospital after he was shot during an Israeli Army incursion in the Rafah Refugee Camp, southern Gaza Strip Friday, Oct. 10, 2003 . (AP Photo/Khalil Hamra)