JERUSALEM - By threatening to ignite a Palestinian civil war, the killing of three children in the Gaza Strip on Monday has jeopardized Israeli Prime Minister Ehud Olmert's efforts to restart long-stalled peace talks.

As violence between the two main Palestinian factions has intensified, hopes are fading for a Palestinian national unity government - seen as a precondition for renewed negotiations with Israel. Olmert is offering the Palestinians far-reaching concessions and a state of their own if they choose the path of peace talks.

“It's one of those situations where all Israel can do is wait it out,” said Shmuel Sandler, a professor of political science at Bar Ilan University outside Tel Aviv.

The apparent target of the drive-by shooting in Gaza City was Baha Balousheh, a top Palestinian security officer and Fatah loyalist. He blamed the rival Hamas, although the Islamic movement denied responsibility and denounced the killings.

Balousheh's three children - 3-year-old Salam, 6-year-old Ahmed and 9-year-old Osama - were in the family car on their way to school when gunmen opened fire from two vehicles. The three were killed along with their driver. Doctors said one of the boys was hit by 10 bullets to the head.