The British Foreign Office released a statement Thursday condemning the Israel Defense Forces operation in the West Bank city of Ramallah on Wednesday.

Four Palestinians were killed and 36 others were wounded in fierce gunbattles between IDF soldiers and Palestinians.

The clashes erupted when troops entered the West Bank city to arrest militants, Palestinian security officials said.

"We continue to urge the Israeli government to exercise restraint, avoid escalation of the situation, and ensure that any actions taken in the occupied territories are proportionate and in accordance with international law," the foreign office said.

Israel Radio reported that undercover troops from the elite Duvdevan unit arrested a member of the militant Islamic Jihad organization in the city.

The detainee was later named as Mohammed Shubaki from the West Bank city of Qalqilyah. Islamic Jihad, in a telephone call to The Associated Press, confirmed the arrest, and Palestinian officials said five militants in total were arrested.

Shubaki's family said he was released from an Israeli prison last year after serving 20 months of a 20-year sentence.

Palestinian police said an undercover Israeli unit driving a Ford sedan was fired on by militants, before the car was eventually set ablaze. The IDF said its forces were confronted by a huge riot and gunfire. One soldier was lightly wounded by a rock hurled in his direction, IDF sources said.

One of the three Palestinians killed was shot in the eye with a live bullet. At least 15 were wounded from rubber bullets in the gun battle, hospital officials said. The fighting took place in Ramallah's central Manara Square.

The army said its forces fired in the air and were not aware of any casualties.

Egypt described the Israeli raid as provocative and incompatible with peace efforts.

"We demand an immediate end to the use of disproportionate violent measures which are likely to deepen the chasm between the sides," said Egyptian Foreign Minister Ahmed Aboul Gheit.

The streets of central Ramallah were deserted except for a few jeeps, as smoke was rising from buildings near the central square in town. Red-colored smoke could be seen in the distance.

As the soldiers began pulling out of the square, they were pelted with hundreds of rocks and a mob of people came running into the square chasing the departing jeeps and pelting them with stones.

Palestinians then flooded into the streets as someone was carried into an ambulance by a group of people.

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