RAMALLAH, Feb 26: Scrambling to save a battered truce, Palestinians on Saturday arrested three West Bank suspects after a suicide bombing claimed by the Islamic Jihad group killed four Israelis on Friday.

The bombing at a Tel Aviv nightclub killed four Israelis and dealt a heavy blow to peace hopes that had brightened since Palestinian President Mahmoud Abbas and Israeli Prime Minister Ariel Sharon agreed to a ceasefire at a Feb. 8 summit.

"We confirm that we carried out the operation," an official for Islamic Jihad in Lebanon, who declined to be named, told Reuters. The group's exiled leadership is primarily based in Damascus but also has a representative in Beirut.

Its Gaza-based leadership, who had earlier denied knowledge of the bombing and said it remained committed to a de facto truce called by Abbas, confirmed the claim.

Israel and the United States said the bombing, the first suicide attack in the Jewish state since November, showed Abbas had to act more forcefully to salvage peace efforts. But Israeli officials said the Jewish state would show restraint for now.

"We will not allow anyone to sabotage the goals and ambitions of our people ... We will bring them to justice," Abbas, elected last month, told reporters.

BOMBER'S VIDEO: A video left by the bomber, Abdullah Badran, 21, showed him flanked by Islamic Jihad flags calling Israelis "enemies of God" and vowing to avenge the killings of Palestinians. He also accused the Palestinian Authority of "trading in the blood of the martyrs" by following U.S. dictates.