Black smoke from tires protesters set alight rose above the hilltop Amona outpost on Wednesday where thousands of Israeli ultranationalists barricaded themselves in houses vowing to fight the destruction of nine uninhabited buildings.

Riot police on horseback, coming under a hail of rocks, used clubs to beat back the crowd made up mostly of religious youngsters, some wearing the orange ribbons that had symbolized resistance to the Gaza withdrawal five months ago.

About 40 protesters and several policemen were hurt.

Amona was the latest battleground for settlers angry over the unilateral Gaza pullout and keen to prevent additional withdrawals in the occupied West Bank if interim Prime Minister Ehud Olmert's Kadima party is elected in a March 28 election.

"The state has declared war on some of its citizens," settler Orit Caspi said at Amona.

Olmert has targeted 24 settlement outposts for removal in a bid to implement a long-standing commitment under a U.S.-backed peace "road map" and assert control after assuming the powers of an incapacitated Ariel Sharon.

He hinted on he would remove isolated West Bank settlements if elected, telling Kadima supporters that after the poll he would "shape the permanent borders of Israel as a country with a clear and solid Jewish majority."

Palestinians, who voted into power the Islamic militant group Hamas last week, fear go-it-alone moves by Israel would deny them a viable state.

Bulldozers stood at the ready at Amona to move on the nine buildings, where protesters had prepared an arsenal of stones, glass bottles and buckets of cooking oil and paint.

Police wearing helmets and visors waded into crowds, knocking heads with their clubs as blood ran down the faces of some of the protesters.

Despite the operation, Israel intended to allow several dozen families in trailer homes to remain at Amona pending further discussion and possible legal moves.

"Every house that is destroyed is a victory for Hamas," said a sign held by protesters.

In Washington, US President George W. Bush demanded that Hamas "recognize Israel, disarm, reject terrorism and work for lasting peace" in his State of the Union address.

Hamas is sworn to Israel's destruction and has led a campaign of suicide bombings and attacks against Israel, although the group has largely held to a year-long ceasefire.