Bomb blast rocks Jerusalem

A Palestinian suicide bomber killed himself and two shoppers in Jerusalem this afternoon.

More than 42 Israelis were injured, seven of them seriously, in the blast at the entrance to a coffee shop in one of the busiest areas of the city.

Israel cancelled a round of peace talks with Palestinians scheduled for later today following the blast, according to a Palestinian security chief.

One man said he saw the bomber looking suspicious but did not have time to raise the alarm. He added: "Then he blew up. I saw arms and legs flying all over the place."

An Arab man was led away from the scene by police but it was not clear whether he had been arrested as a suspect or if he was being protected from angry bystanders.

In a phone call to the Associated Press news agency, the Al Aqsa Brigades, a militia linked to Palestinian leader Yasser Arafat's Fatah movement, claimed responsibility for the bombing.

All roads in and around the site of the bombing were closed to traffic. The bomb went off next to Jaffa Street, known as the "street of the bombers" where 97 Israelis have been killed in a series of attacks over the past five years.

Hardline movements Hamas and Islamic Jihad are opposed to any peace negotiations between Israel and the Palestinians and have vowed to continue attacks during American brokered ceasefire talks. Israel has said Mr Arafat's efforts to rein in militant groups and prevent attacks will determine whether he will be allowed to travel to the Arab summit in Beirut.

Despite serious differences between the parties, Israeli officials speaking before today's bombing, said they were optimistic that a ceasefire would be announced by the start of next week.