"Israel is not looking for an escalation with Syria but Damascus is playing with fire by threatening us with its terror arsenal," a senior official close to Prime Minister Ariel Sharon told AFP.

"We warned Syria against the temptation to attack us during the war in Iraq. That would be an even greater mistake for them after the victory of the coalition" of US and British forces in Iraq, said the official, who asked not to be named.

Shara said Sunday that if the United States decides to attack Syria, Israel will also be harmed.

The Israeli official said that at this stage Israel, which seized the Golan Heights from Syria in the 1967 Arab-Israeli war, was restricting itself to "supporting US efforts to stop Syrian support for terrorism".

And Israeli Defence Minister Shaul Mofaz also said the Jewish state would brook no threat from Damascus.

"We must monitor what it happening there. The Americans have taken out a 'yellow card' on them, and were right to do so," he said on army radio, using the footballing term for a serious warning.

US President George W. Bush sent tensions with Syria soaring on Sunday when he said he believed the country was holding banned chemical weapons.

Washington has also accused Syria of harbouring Iraqi leaders who fled the US-led invasion, a charge Damascus has denied.

Syria's ambassador to Washington protested Friday against what he called a "concerted campaign" by the United States and Israel against Damascus over its alleged support for Iraq.

SPACE.WIRE