DARYN KAGAN, CNN ANCHOR: A papal envoy sent a message of peace to the Israelis and Palestinians, but this new year brings little optimism that those prayers will be answered any time soon. Israelis and Palestinians are both vowing revenge in the wake of the weekend killings of prominent activists. CNN's Matthew Chance has the latest.</s>MATTHEW CHANCE, CNN CORRESPONDENT (voice-over): A new year in Israel and the Palestinian territories, but old threats of revenge have surfaced again. Israeli troops are out in force on approaches to Palestinian-controlled areas. Tight security is in place as the violence is fled once more. Angry scenes in Jerusalem overnight as Binyamin Kahane and his wife were laid to rest. Like his father before him, this extremist Jewish settler preached violence against Arabs and met a violent death. The couple died in a halo of bullets as they drove to the West Bank. Here, thousands of followers were demanding revenge. Palestinians were attacked; a Swedish photographer was stabbed. But no side here as the monopoly on anger. This the funeral of Thabet Thabet, a senior official of Yasser Arafat's Fatah movement the Palestinians say was assassinated by the Israeli security forces on Sunday. Now there are Palestinian calls for revenge attacks on Israeli soldiers, it may be a dangerous and uncompromising time for Middle East peace.</s>CHANCE: In the latest confrontations, two Palestinian policemen have been found dead near the West Bank town of Tulkarem. Israeli military officials say there have been a number of shooting incidents, exchanges of gunfire in the past 24 hours, near the town. According to the Palestinian Red Crescent, as well, a 12-year-old Palestinian boy has died today, apparently dying from the wounds incurred yesterday when he was shot by Israeli soldiers in the divided city of Hebron. So, after so much hope here in recent days and recent weeks for some kind of negotiated peace agreement, it does appears that violence is, once again, taking central stage. Back to you, Daryn.</s>KAGAN: Matthew Chance, thank you very much for that report.
Crisis in the Middle East: New Year, Old Threats