The United States says Israel has given assurances that Israeli forces will neither harm nor capture Yasser Arafat during their incursion into his Ramallah headquarters. 

Secretary of State Colin Powell told reporters Friday that Israeli forces intend only to isolate Mr. Arafat. He also said the Israelis assured him that they do not intend to occupy the Palestinian territories. 

Mr. Powell also strongly condemned recent Palestinian terrorist acts, which he said have halted the peace process. He said there had been cause for "guarded optimism" after a series of peace talks in recent weeks. But he said terrorism has stifled the peace process. 

The secretary said that although the present situation looks dark, the United States must continue to work hard to attain peace. He said U.S. Middle East envoy Anthony Zinni will remain in the area and continue to work hard to achieve a peaceful solution. 

Mr. Powell also said the U.S. government deplores the Israeli incursion into Ramallah. He said the United States calls on Israeli Prime Minister Ariel Sharon to carefully consider the consequences of his actions. 

Late Friday, Mr. Powell spoke by phone with Mr. Arafat. A U.S. official said he told the Palestinian leader of the United States' grave concerns over the situation. 

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