JERUSALEM (AFP) - The head of Israel's domestic intelligence agency said on Sunday he is "extremely worried" that right-wing extremists may attempt to carry out assassinations to derail the Middle East peace process. Yuval Diskin, head of the Shin Beth spy agency, expressed his fears days before the 13th anniversary of the killing of Israeli Prime Minister Yitzak Rabin by a Jewish extremist, and as Israeli prepares for early elections in February. "As we mark the anniversary of Rabin's assassination the Shin Beth has identified among this extreme right-wing group... a willingness to use firearms in order to stop political processes and target political leaders," he said. "The Shin Beth is extremely worried about this issue," he told Israel's weekly cabinet meeting, according to a senior official. His remarks come amid a sharp escalation of right-wing threats and violence directed at Israeli security forces operating in the occupied West Bank and left-wing Israeli peace activists. Hardline Jewish settlers have clashed with police in the West Bank four times in the last two weeks in incidents condemned by outgoing Israeli Prime Minister Ehud Olmert and other senior officials. On November 10 Israelis will mourn Rabin, who was gunned down at a Tel Aviv peace rally in 1995 by Yigal Amir, who hoped to derail peace talks with the Palestinians. Meanwhile, Israel on Sunday decided to cut off all funding for illegal settlement outposts in the occupied West Bank in response to an escalation of settler attacks on its security forces. The decision would apply to the more than 100 wildcat outposts considered illegal under Israeli law, but not to the more than 120 official settlements. The international community considers all West Bank settlements to be illegal. The decision was taken after settlers and Israeli security forces clashed for the fourth time in less than two weeks, an escalation in violence that outgoing Prime Minister Ehud Olmert called an "intolerable situation." "There is a not insignificant group of outlaws that are behaving in a manner that is threatening the rule of law," Olmert said ahead of a weekly cabinet meeting. "This is an intolerable situation that we refuse to accept."The decision came after teenage settlers hurled rocks at border police near the West Bank town of Hebron on Saturday, lightly injuring two of them. Defence Minister Ehud Barak also condemned the violence, calling it a "grave phenomenon that no viable society should tolerate." Hardline settlers say they have adopted a "price tag" policy of attacking Palestinians or security forces every time an outpost is demolished. Dov Lior, the head rabbi of the nearby settlement of Kiryat Arba, compared Israeli security forces to "the Nazis in Poland" during World War II. "The Nazis also woke people up in the middle of the night and deported them. At that time also we were driven from our homes for no reason other than that we were Jewish," he said. About 100 wildcat outposts dot the West Bank, some consisting of just a few trailers and others of several mobile homes connected to the power grid. They are usually built as extensions to officially established settlements.