The government has turned the army and police loose on Palestinian terror groups Hamas and Islamic Jihad. In particular, attacks on terrorist leaders was allowed again. Shortly thereafter, a gun battle broke out as Israeli troops entered two towns in the West Bank to destroy the family home of a suicide bombers who made attacks in June and July. Another gun battle occurred as Israeli troops went to a village to arrest terrorist suspects. 

Israel says it will hold back from a major response to the August 19th bombing to give the Palestinian Authority to do something about it. The Palestinians are debating the issue, but are unlikely to take on the terrorist groups.