GAZA CITY, Gaza Strip — Israeli troops raided a Gaza refugee camp Friday in retaliation for a deadly Palestinian mortar fire, sparking fighting that killed at least six Palestinians and wounded 24 Palestinians and an Israeli soldier.

Israeli bulldozers knocked down buildings in the Khan Younis camp, and hundreds of Palestinians fled their homes for fear the army would demolish them. Dozens sought refuge in a hospital.

The raid was part of violence that has continued despite increased optimism over the peace process following the death of Palestinian leader Yasser Arafat last month. Israeli Prime Minister Ariel Sharon said Thursday that 2005 will be a year of opportunity and held out the prospect of an independent state for the Palestinians if they stop violence.

The Israeli raid came after a Palestinian mortar fire in the past week killed a Thai worker in a Jewish settlement and injured 17 people, including 11 soldiers.

At least four gunmen were among the six Palestinians killed in Friday's raid. The 24 wounded included an ambulance driver and five under the age of 16, were wounded in the fighting, hospital officials said. One Israeli soldier was wounded when Palestinians fired an anti-tank missile at forces in the area, the army said.

Addressing an academic conference Thursday evening, Sharon said Arafat had been the main obstacle to peace and his death in November turned 2005 into a "year of great opportunity."

Sharon has signaled he would work with Arafat's successor, likely to be PLO chief Mahmoud Abbas, the front-runner in Jan. 9 presidential elections. Sharon said he would do his utmost to allow the vote to proceed, including redeploying troops.

"We stand before a unique window of opportunity. Who knows when we will have this opportunity in the future," Sharon said.

Sharon said he is determined to go ahead with the planned withdrawal from Gaza and four West Bank settlements in 2005, "with conviction and without hesitation." Sharon is in negotiations with the moderate Labor Party to join his coalition as a buffer against threats from hard-liners to bring him down.

The withdrawal is set to start July 3 and to be completed within three months. A final Cabinet vote on approving the pullout was initially scheduled for June.

However, Sharon adviser Asaf Shariv said Friday that the final vote might be held several months earlier, to allow for possible legal challenges and practical preparations. The Maariv daily reported that the vote could be held as early as January.

Withdrawal opponents hoped that with final approval still months away, they could topple Sharon or find another way to stop the plan. If Sharon decides to hold the vote in coming weeks, it could intensify opposition among hard-liners in his Cabinet.

Sharon said that the withdrawal could lead to future peace talks.

"This initiative is the foundation and cornerstone for the great opportunities which lie before us," he said.

Addressing the Palestinians, he said: "We have no desire to rule over you. We have no desire to run your affairs."
If Palestinians stop militant groups and carry out reforms, "the Palestinians can then also live in dignity and freedom in an independent state," he said without giving a timeframe.

When Arafat was still alive, Sharon insisted on a unilateral pullback, saying he had no Palestinian partner. On Thursday, he said he is ready to coordinate the withdrawal with the new Palestinian leadership.

Palestinian Cabinet minister Saeb Erekat said Sharon should have negotiated the Gaza plan with the Palestinians, but that the Palestinians welcome any withdrawal. "If Sharon wants to leave Gaza or any part of the West Bank we're not going to stop him and we stand fully ready to assume our responsibilities there," Erekat said.

Erekat also said negotiations on a final peace deal should resume quickly. The Palestinians fear that despite the conciliatory tone, Sharon will try to dictate the pace and delay the resumption of peace talks. Sharon has said he envisions a long-term interim deal with the Palestinians.

Sharon also said Israel would seek to annex large Jewish settlements in the West Bank and keep all of east Jerusalem, areas captured by Israel in the 1967 Mideast war and claimed by both Israel and the Palestinians as a capital.

The Palestinians want all of the West Bank, Gaza and east Jerusalem for their state.

Hamas spokesman Sami Abu Zuhri said Sharon's speech was a declaration of war "against the rights of the Palestinian people," and that the militant group would keep fighting occupation. Hamas has been responsible for dozens of suicide bombings that have killed hundreds of Israelis during four years of violence.