WASHINGTON (AP) -- President Bush is holding a threat of diplomatic isolation over the head of Yasser Arafat to force the Palestinian leader to accept responsibility for a weapons smuggling operation and to take other steps to curb terror attacks on Israel.
Bush angrily accused the Palestinian Authority on Friday of "enhancing terror" by trying to smuggle a boatload of weapons from Iran. Despite repeated U.S. demands, Arafat has not acknowledged responsibility.
The president and his senior advisers reviewed potential U.S. sanctions at a White House meeting that prompted outrage from Palestinian officials.
No deadline was set for Arafat to comply, senior U.S. officials said. But he will be watched closely for signs that he intends to dismantle terror groups and arrest Palestinian officials involved in the smuggling episode, the officials said on condition of anonymity.
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