The Israeli government last night signalled an end to what officials called its policy of restraint towards the Palestinians after a suicide bomber killed two people and wounded about 30 in the first such attack for five months.

The Islamic Jihad organisation claimed responsibility for the blast at a shopping mall in the city of Netanya on Israel's Mediterranean coast. It was the most serious attack by Palestinian militants since they agreed in February to abide by a period of calm in the conflict with Israel.