Two Israelis were killed and about 30 others wounded when a suicide bomber blew himself up outside a shopping mall in the Israeli town of Netanya.
The Palestinian militant Islamic Jihad organization claimed responsibility for Tuesday's blast. The bomber, an 18 year-old man from the northern West Bank, had just graduated from high school.
The Palestinian Authority condemned the attack, and accused militants of trying to wreck plans for a peaceful Israeli pullout from the Gaza Strip. The White House also denounced the bombing.
Separately, Israel's army chief warned troops and officers that he will take tough action against any soldier who disobeys orders to evacuate Jewish settlers from the Gaza Strip.
Lieutenant General Dan Halutz said Tuesday the army has already disciplined 30 soldiers for refusing to take part in the mid-August evacuation.