Report in Haaretz. According to IDF radio, Hamas called al-Jazeera to claim responsibility for the attack and al-Jazeera broadcast it live. I wonder whether al-Jazeera broadcasts these things with enthusiasm or with a professional distance.

Hamas spokesman Abed al-Aziz al-Rantisi said:

This is the heavy price that Israel pays on what it has done. We will not cave in to any Arab or international pressure and we will not halt our struggle until the Jews leave Palestine.

On the BBC, PA spokesman Ziad abu-Ziad offered condolences to the families of the victims. I don't think that they will find that very sincere. He went on to blame Israel for "restoring motivation" to Hamas.

Good straightforward piece on "what the attack means".