By Nidal al-Mughrabi
GAZA (Reuters) - The flow of fuel from Israel into the GazaStrip came to a halt on Thursday, one day after Palestinianmilitants attacked a border terminal used to supply theHamas-controlled territory.
"Gaza is on hold," said Bilal Abdel-Rahman, a father of twofrom Gaza City, citing the shortage of petrol.
Two Israeli civilians were killed in Wednesday's attack bymilitants on the border crossing at Nahal Oz, the only terminalfor piping fuel to the Gaza Strip and its 1.5 million people.
Two Palestinian militants and two civilians were alsokilled when Israeli troops backed by tanks responded.
Israel said it held Hamas responsible for the attack.
A report issued by an Israeli think-tank on Thursday saidHamas was in the midst of a major arms build-up, with help fromIran and Syria, that included longer-range rockets andanti-tank weapons.
The Intelligence and Terrorism Information Center, whosemembers include former Israeli security officials, said Hamascould throw up to 20,000 fighters, some trained in Iran, into acampaign to try to repel a major Israeli ground assault.
Mark Regev, spokesman for Israeli Prime Minister EhudOlmert, said the government "cannot sit idly by and watch". Hedeclined to say how Israel might respond.
Hamas Islamists, who seized Gaza after routing forces loyalto Palestinian President Mahmoud Abbas in June, haveacknowledged the build-up but have not released details.
The European Union, which provides fuel to Gaza's lonepower plant, said it did not pump any supplies on Thursdaythrough Nahal Oz. An EU official said supplies were unlikely toresume before Sunday.
An EU official said the Israeli army has decided to reviewthe "whole security set up and this could take a few days. Onlythen we will be in a position to resume" fuel supplies.
SOARING COSTS
The official said the Gaza power plant had enough fuel onhand to last about a week.
Israel tightened its cordon of the Gaza Strip after theHamas takeover, and before Wednesday's attack, had beenallowing in only a fraction of the gasoline and diesel thatGaza normally consumes, said Mahmoud al-Khuzundar, head of theenclave's Fuel Suppliers' Association.
Khuzundar said the Hamas-controlled government in Gaza hasbeen siphoning off nearly 30 percent of all incoming fuelbefore its distribution to petrol stations.
"Petrol stations have had to close and maybe tomorrowcooking gas will run out and the crisis will get worse,"Khuzandar said.
A gallon of gasoline was selling for nearly $30 on theblack market, roughly $7.50 a litre.
Consumers in need of a canister of cooking gas faced pricesapproaching $111, nearly double the price two days ago.
Israel accused Hamas authorities of not allowing thedistribution of fuel that was pumped before the raid intotankers on the Palestinian side of Nahal Oz.
Palestinian distributors say they are on strike to protestagainst Israeli cutbacks in fuel supply.
With little fuel available, Gaza residents made due byputting off errands and by walking to work and school.
"Walking is healthy," a female university students told hercolleague.
"I agree, but not to Nusseirat," her colleague said,referring to their school, 10 kilometers (6 miles), away.
(Additional reporting by Adam Entous; Editing by AriRabinovitch and Mary Gabriel)
