Two Israeli security guards were shot dead overnight in a shooting attack at the Nitzanei Shalom industrial zone, near the West Bank city of Tul Karm. A third guard managed to flee after the gunman opened fire.

The bodies of the two middle-aged men were discovered Friday morning in a factory where in the industrial zone, on the boundary between Israeli territory and the Palestinian-ruled city.

Security officials said the attack was terror related. They suspect a militant from the Islamic Jihad organization infiltrated the industrial zone and opened fire at close range.

The victims were named as Shimon Mizrahi, 53, of Beit Hefer, and Eli Wasserman, 50, of Alfei Menashe.

The two guards were apparently screening Palestinians workers coming in when the gunman approached them, opened fire and then escaped, the military said.

"A Palestinian shot dead two guards at the security-check area at the entrance to the industrial zone," an Israel Defense Forces spokeswoman said.

"We are treating this as a terrorist attack. It may have come from the outside, but there are also hundreds of Palestinians who work at Nitzanei Oz."

There were no other casualties reported and no Palestinian militant group immediately claimed responsibility.

Rescue teams arrived at the site and found one of the guards dead and the other in critical condition. Security officials were searching the area for the gunman, who is believed to have fled into Tul Karm.

Palestinian security officials in Tul Karm said IDF soldiers moved into the West Bank in force after the attack and set up a checkpoint.

The attack seemed likely to further complicate efforts to forge a peace deal between Israel and Palestinian moderates in the West Bank. Israel has said its continued military presence in the territory is necessary because Palestinian authorities are not yet capable of controlling militants.

"This was a clear example of extremism and terrorism by those seeking to foil any prospects for advancing peace between Israel and the Palestinians," government David Baker said.

Riad al-Malki, the Palestinian foreign minister, condemned the attack, saying it was meant to undermine the efforts by the Palestinian government to undertake full security responsibilities in the West Bank.

The attack was also meant to embarrass Palestinian President Mahmoud Abbas while he is in Washington for meetings with U.S. officials, al-Malki said.

The attack resembles an August 2002 incident, in which 27-year-old Shani Ladani was shot dead at close range by militants in the same industrial zone, where he worked.

In a separate incident on Friday morning, Palestinians near the West Bank city of Ramallah hurled three firebombs at an Israeli vehicle driving in the area. There were no injuries.

Also Friday, three Qassam rockets fired by Palestinians in Gaza struck southern Ashkelon. One of the rockets hit a cemetery in the south of the city, causing some damage to tombstones.

A fourth Qassam was fired toward Kibbutz Yad Mordechai, in the western Negev.

There were no injuries reported in any of the incidents.

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