Palestinian gunmen killed the three young children of a leading enemy of the ruling Islamic Hamas movement today, firing dozens of rounds into their car as it passed through a street crowded with youngsters.

It is believed the assassination target was the children’s father, Baha Balousha, a senior Palestinian intelligence officer. He was not in the car. There has been no immediate claim of responsibility and Hamas has denounced the drive-by attack.

The car was riddled with some 60 bullets by gunmen driving in two vehicles, Palestinian security officials said. Its seats, school bags and a small plastic bag with a sandwich in it were splattered with blood.

Three of Mr Balousha’s children, ranging in age from six to nine, were killed in addition to an adult, hospital officials said. Four more people were wounded in the attack in Palestine Street, lined with nine schools.

The children's bodies were later paraded through the streets of Gaza, mourners holding them in the air as they marched to the cemetery.

The mood was tense as wild-eyed Fatah security forces hung from the sides of pickup trucks, firing into the air with their Kalashnikovs.

The deaths were instantly politicised, with Fatah announcers screaming imprecations at the Hamas-led government, accusing it of responsibility and calling on it to resign.

In a disturbing sign of wider regional tensions leaking into the Palestinian arena Fatah sought to portray the Iranian-funded Hamas as stooges of Shia Tehran, killing their fellow Sunni Palestinians.

"We hold the Iranian-backed Minister of Interior to blame, they encourage terrorism and the policies of assassination and targeting our innocent children," a spokesman told the crowd, offering no evidence.

"This government is the government of the Shias and the Allawite regime in Syria. They are killing Sunnis. We, Fatah, are the only Sunnis."

The children's deaths follow a series of internal feuds, the most recent an attack on Hamas Interior Minister Said Siyam's convoy over the weekend.

Fatah and Hamas immediately denounced the latest killing. Ismail Radwan, a Hamas spokesman said: "Hamas condemns this ugly crime. This is security chaos, many parties are trying to make the internal Palestinian arena very chaotic and fill our hearts with sadness.

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