Our people have a right to defend themselves against aggression, occupation and settlements

Militant Palestinian factions

Radical factions have dismissed his plea. They have called on Palestinians to continue their uprising against Israeli occupation, failing to mention the word ceasefire.

But the hardliners also made no threat of attacks inside Israel itself, which BBC correspondents say may be a sign Mr Arafat has won the breathing space he so badly needs.

The emergency meeting in Gaza was attended by more than a dozen groups, among them Hamas and Islamic Jihad which see attacks on Israel as legitimate forms of resistance.

The former is reported to have said it carried out Friday's attack on a nightclub in Tel Aviv.

Israeli restrictions

Border closed with Egypt and Jordan Palestinian workers to be deported from Israel Oil and gas supply stopped Mail halted Money transfers stopped

"Our people have a right to defend themselves against aggression, occupation and settlements, and to pursue the popular intifada [uprising] as a legitimate means against the continuing occupation of our land," the factions said in a statement.

Overhead flights

At one point, the militants had to abandon their talks when the sound of F-16 jets flying overhead forced an evacuation from the building.

The Israeli military has apparently already selected its targets and only needs to be given the green light to attack.

Anti-Palestinian feeling amongst Israelis has been running high since the Friday's bombing.

On Sunday, the first of the funerals for the dead were held.

Many of the 90 Israelis injured by the nails and shrapnel from the bomb remain in hospital, several in a critical or serious condition.

'Real test'

Mr Arafat announced the ceasefire on Saturday. Palestinian media have since announced a series of measures being taken to implement it.

Palestinian security forces say they have told the militants that further attacks inside Israel will not be tolerated.

Mr Arafat insists that by bowing to international pressure for a ceasefire, he is acting in the higher interests of the Palestinian people, hundreds of whom have lost their lives over the past nine months.

Arafat: Ceasefire order followed warning from Israeli ministers

But his offer does not satisfy a key Israeli demand - the re-arrest of militant leaders released from Palestinian jails at the beginning of the Palestinian uprising.

"The real and only test will be the cessation of terrorism, the arrest of those involved, the inciters, the perpetrators and those behind them," said Israeli Foreign Minister Shimon Peres.

But so far there have been no major incidents, only reports of scattered shooting incidents.

Israel's restraint has been commended by the United States.

US Secretary of State Colin Powell said he understood the pressure Israel was under to retaliate with force, urged it to maintain its "measured response" to Friday's attack

On Saturday, the Israeli Government decided on a series of what Israeli newspapers are describing as suffocation measures aimed at making life difficult for Palestinians.

The West Bank and Gaza have again been sealed off until further notice, and Palestinians, including thousands of workers, have been barred from entering Israel.