Israeli Prime Minister Ariel Sharon has cut all ties with the Palestinian Authority and closed the border with Gaza after militants killed six Israeli civilians Thursday.
Mr. Sharon's office says newly-elected Palestinian President Mahmoud Abbas must rein in militants and stop their attacks before contacts will be resumed.
Palestinian Cabinet minister Saeb Erekat called on Mr. Sharon to reconsider, saying the best way to restart the peace process is to resume dialogue. Mr. Abbas condemned Thursday's attack and the deadly Israeli raids that followed, saying they do not benefit the peace process.
The militant groups Hamas, the Popular Resistance Committee and al-Aqsa Martyrs Brigades all claimed responsibility for Thursday's attack on the Karni crossing between Israel and the Gaza Strip.