It set off retaliatory crackdowns by Hamas in Gaza and Fatah in the West Bank. Hundreds of Palestinians in both groups have been arrested. Hamas shut down a Fatah- affiliated radio station; Fatah imposed a ban on public assembly in the West Bank.
At the center of the conflict was Hillis, a member of the Revolutionary Council that advises Fatah's leadership. He was involved in negotiations between Fatah and Hamas before their violent split last year. As other Fatah activists fled Gaza, he stayed put with his paramilitary force and often was the Fatah contact in Gaza for the Hamas leadership.
But when members of his force became suspects in the car bombing, he was accused of hiding them. After days of negotiations, Hillis was given until midnight Friday to hand them over to the police.
The family issued a statement denying involvement in the car bombing and other violence.
Abbas denounced the Hamas raid as a setback for his efforts for Palestinian unity and worked with Israel to arrange safe passage for Hillis and his followers.
Ambulances met the fleeing Palestinians on the Israeli side and took the wounded to hospitals, the Israeli spokesman said. He said the rest were being debriefed about the fighting at an Israeli army installation near the border.
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boudreaux@latimes.com
Special correspondent Abu Alouf reported from Gaza City and Times staff writer Boudreaux from Jerusalem.