Arafat receives publicity black eye of enormous proportions, and his utility to the negotiating process is once again questioned. Arafat denies any connection to Iran, then several weeks later recants. Violence against Israelis ebbs and flows but suicide attacks continue, prompting Israel to retake Palestinian cities. Spectacular Palestinian terrorist attacks are perpetrated against Israeli civilians for remainder of the year. Arafat is confined to his offices in Ramallah.