CAIRO, July 31: Israel today suspended peace talks with Palestinians, issued an arrest warrant against the Palestinian police chief and announced that the authorities had identified two members of the radical group Hamas from the West Bank who acted as suicide bombers that killed 15 people in Jerusalem.

An official spokesman disclosed in Jerusalem that the peace talks were suspended after a Cabinet meeting that took stock of the situation following yesterday's double suicide attack in a Jewish market.

The Cabinet felt that the Palestininan authority must carry out its commitment to fight terrorism in order to make progress in peace process, the spokesman said.

The Israeli authorities issued the arrest warrant against Gen Ghazi Jebali for his suspected encouragement of attacks on Jewish settlements in the West Bank.

Prime Minister Benjamin Netanyahu's office denied that the warrant had any link with yesterday's bombing.Israel announced that they had identified two suspected suicide bombers belonging to radical group Hamas, who were responsible for the bombing.

Hamas has also reportedly claimed responsibility for the suicide bombing.The group issued the claim in a leaflet faxed to an international news agency which gave Israel until 11.30 pm (IST) on Sunday to free all Palestinian prisoners including Hamas founder Sheikh Ahmed Yassin.

Hamas sources said the group's Izz el-Din al-Qassam military brigades carried out the attack in Jerusalem's main Jewish market to avenge a Jewish woman's pasting of objectionable posters of Prophet Mohammad.

Meanwhile, Egypt began a new round of shuttle diplomacy with President Hosni Mubarak flying out to meet Syrian leader Hafez Assad and King Hussain of Jordan, to discuss ways to overcome the deadlocked peace process.

President Assad said the words and deeds of the Israeli government of Benjamin Netanyahu did not indicate the Jewish state's intentions to establish peace.

Mubarak has said that the alternative of peace ``after this period of stagnation will be dangerous not to one country but to all the region's states, including Israel.''

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.