US President George W Bush has said he is "furious" about a bombing at the Hebrew University in Jerusalem which killed seven people, including five US nationals.

"I am just as angry as Israel is," the president said, speaking at the start of a meeting with King Abdullah of Jordan in the White House.

"But even though I am mad, I still think peace is possible," he said.

Wednesday's bomb attack has been claimed by the Palestinian militant group Hamas.

In addition to the seven people killed, a further 80 were injured, including Arabs, South Koreans and Japanese students attending summer courses at the university.

Retaliation

Mr Bush affirmed his support for Israel's self-defence, but emphasised that all sides should be committed to peace.

More than 80 people were injured in the attack

Israeli Defence Minister Benjamin Ben-Eliezer approved military retaliation against Hamas targets as a result of the attack, but there were no details on the exact nature of the response, according to Israeli media reports.

Hamas, in turn, warned it would kill 100 Israelis for any new attack on any of its leaders.

It said the attack on the university campus was in retaliation for an Israeli air strike on Gaza City last week in which 15 people were killed, including the group's military leader.

In a separate incident, the body of an Israeli man, his hands and feet bound, who had been shot dead was found near the West Bank town of Tulkarm, police said on Thursday.

Condemnation

The Palestinian Authority condemned the attack on the university but said Israeli Prime Minister Ariel Sharon was "responsible for this cycle of violence".

In a statement claiming responsibility for the attack, Hamas said: "It's a part of a series of responses that will take a long time and teach all Israelis."

Israeli police have been braced for bombings - reports say they have intelligence that as many as 60 attacks are being planned.

The blast at the Hebrew university was the second attack in the city within 24 hours.

The explosive was apparently left in a bag in one of the university's cafeterias, marking a change of tactics from using suicide bombers.

On Tuesday, a suicide bomber blew himself up outside a food stand in Jerusalem, injuring several Israelis and killing himself.