Israel's cabinet meets on Sunday as tensions continue to rise in Jerusalem after a shooting attack at a religious seminary that killed eight Israelis last Thursday.

Israeli Prime Minister Ehud Olmert addresses the cabinet.

"The state of Israel has responses to all the threats and the ability to respond to all dangers, and has the force, knowledge and resourcefulness to cope with anything that can threaten the security of the state of Israel and its citizens,"

Also on Sunday in Jerusalem, Israeli police arrest several Israeli right wing extremists in East Jerusalem during a protest against the killings.

Hamas took responsibility for the attack on Friday but later backtracked. A relatively unknown group reportedly also claimed responsibility.

On Saturday Israeli officials said Israeli-Palestinian peace talks would proceed on several levels despite the attack, after Palestinian President Mahmoud Abbas called for Israel not to abandon peace efforts despite a recent escalation of violence.

Palestinian negotiator Saeb Erekat says Israel and the Palestinians will hold talks on Thursday in a meeting with a U.S. general assigned to monitor progress.