ISRAELI forces shot dead a Palestinian policeman early this morning while scouring the West Bank for militants.
Tarek Hindawi, 22, was killed in a firefight which erupted when Israeli troops entered the Palestinian town of Halhul near Hebron.
The Israeli action came after several hundred people had stormed a Hebron jail amid fears that it might be bombed following air strikes on a prison compound in Gaza City.
Israeli troops also seized at least one wanted militant, linked to Palestinian leader Yasser Arafat's Fatah movement.
The US gave Israel a rare rebuke for its air raids on Gaza City that sparked the riots. State Department spokesman Richard Boucher called Israel's strikes "counterproductive."
He said: "Though we understand the need for Israel to take steps to ensure its self-defense, we're seriously concerned about Israeli attacks over the past several days on Palestinian Authority facilities, particularly in areas that are heavily populated by civilians."
Washington also appeared to have thawed its frosty ties with Arafat, whom President George W. Bush has accused of "enhancing terror," after the veteran Palestinian leader sent a letter to outline steps he is taking to counter arms smuggling.
Boucher welcomed the contents of Arafat's letter that was delivered through the US consul-general in Jerusalem to Secretary of State Colin Powell, but cautioned that the Palestinian leader still had to act to rein in anti-Israel attacks.