A branch of the Islamic Jihad group said it was behind explosion at a house near Tel Aviv, but the group's leader denied it had breached a truce called recently by Palestinian factions. The blast on Monday night was caused by Ahmad Yahya, a 22-year-old from a village near the West Bank town of Jenin. The explosion, which killed one female Jewish settler in the house as well as the presumed bomber, was a result of the Israeli government's failure to release all Palestinian prisoners. But Islamic Jihad leader Mohammed al-Hindi said, "Until now we are still investigating the announcement but we can confirm our commitment to the suspension of attacks in Israel." Islamic Jihad and Hamas announced late last month a halt to anti-Israeli attacks for a three-month period but attached a raft of conditions to the truce, including the release of all prisoners. **Mamhoud Abbas Calls off Meeting with Sharon and Quits Key Post*** Palestinian Prime Minister Mahmoud Abbas has tendered his resignation from a key leadership body of the mainstream Fatah movement. The move comes amid severe splits in the group - led by Palestinian leader Yasser Arafat - over further negotiations with Israel. Also Mahmud Abbas called off a planned meeting with Ariel Sharon, plunging the peace process into a new crisis hours after a fatal bomb attack. Sources close to Abbas said he pulled out of the summit scheduled for Wednesday in protest at Israel's handling of the thorny issue of prisoner releases after he himself came under fire from fellow Palestinian leaders. The meeting would have been Sharon and Abbas' second round of talks in eight days, a period of rising hopes of progress for the US-backed roadmap peace plan which aims to bring an end to the decades-long conflict. Tuesday's cancellation followed a meeting of senior Palestinian officials in the West Bank town of Ramallah late Monday, chaired by Palestinian leader Yasser Arafat and attended by Abbas. **PHOTO CAPTION*** Ahmad Yahya, a 22-year-old Palestinian from a village near the West Bank town of Jenin was behind a bomb attack. (AFP)