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The Palestinian Authority has intelligence indicating Hamas is planning to attack its officials, Palestinian President Mahmoud Abbas said on Wednesday. Abbas' statement follows the announcement made earlier this week by the PA, in which it confirmed that members of a Hamas cell were arrested, and later confessed to plotting to carry out attacks against Palestinian Authority officials and institutions before Popularity Slip Poll: Hamas popularity falls among Palestinians / Reuters Jerusalem Media and Communications Centre survey says Hamas losing its hold on Palestinian people, as public support of the Islamist group drops from 27.7% to 18.8% since beginning of 2009 Full Story July 7th – the date Fatah and Hamas are expected to sign a reconciliation agreement.

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In an interview with Russian television, Abbas said: "The Palestinian Authority is closely monitoring the situation, and when the time is right we will expose those involved in this affair. For now we must wait. We have verified information that Hamas is hoarding weapons and explosives. The Authority has found two tons of explosives belonging to Hamas."  

The leader of the militant Palestinian group Hamas said Monday that its fighters had stopped firing rockets at Israel for now. He also reached out in a limited way to the Obama administration and others in the West, saying the movement was seeking a state only in the areas Israel won in 1967.

“I promise the American administration and the international community that we will be part of the solution, period,” the leader, Khaled Meshal, said during a five-hour interview with The New York Times spread over two days in his home office here in the Syrian capital.

He repeated that he would not recognize Israel, saying to fellow Arab leaders, “There is only one enemy in the region, and that is Israel.”

Construction has begun on approximately 60 new homes in a Jewish settlement in Israeli-occupied East Jerusalem, the Israeli campaign group Peace Now says. The work, in East Talpiot settlement, is aimed at creating a belt around East Jerusalem that would sever it from the rest of the West Bank, the group says.

Settlements on occupied land are illegal under international law. Israel disputes this and also argues that East Jerusalem is not subject to its pledge to freeze settlement work. Israel's claim is based on its annexation of East Jerusalem, unrecognised by the international community, which it captured along with the West Bank and other Arab territory in the 1967 war.

Israelis view settlements such as East Talpiot as neighbourhoods of Jerusalem. Such areas tend to be well integrated into the city's infrastructure.

Palestinian Prime Minister Salam Fayyad submitted his resignation today in a move that could help usher in a power-sharing deal between Western-backed President Mahmoud Abbas and his rivals in the militant group Hamas. Fayyad's resignation was meant to be a goodwill gesture toward the militant group. However Hamas officials dismissed his resignation, arguing his appointment has been unconstitutional.

In opening a bold overture to the Islamic world on Thursday, President Obama confronted frictions between Muslims and the West, but he reserved some of his bluntest words for Israel, as he expressed sympathy for the Palestinians and what he called the “daily humiliations, large and small, that come with occupation.”

While Mr. Obama emphasized that America’s bond with Israel was “unbreakable,” he spoke in equally powerful terms of the Palestinian people, describing their plight as “intolerable” after 60 years of statelessness, and twice referring to “Palestine” in a way that put Palestinians on parallel footing with Israelis.

Mr. Obama said the bond between the United States and Israel was “based upon cultural and historical ties, and the recognition that the aspiration for a Jewish homeland is rooted in a tragic history that cannot be denied.”“On the other hand,” Mr. Obama added, “it is also undeniable that the Palestinian people — Muslims and Christians — have suffered in pursuit of a homeland. For more than 60 years, they’ve endured the pain of dislocation.” He said Americans “will not turn our backs on the legitimate Palestinian aspiration for dignity, opportunity and a state of their own.”

Former prime minister Ehud Olmert offered Palestinian Authority Chairman Mahmoud Abbas that the Holy Basin area of Jerusalem would be under no sovereignty at all and administered by a joint committee of Saudis, Jordanians, Israelis, Palestinians and Americans, the former prime minister told Newsweek magazine in an interview in the current issue.

The proposal to internationalize the Holy Basin was intended to achieve a breakthrough in the negotiations around the issues of sovereignity over holy sites in Jerusalem, the issue which had reportedly caused the breakdown of the Camp David talks in July 2000.

Olmert's proposal implies Israeli willingness to give up sovereignity over the Temple Mount, the Old City and the Mount of Olives. The offer appears to contradict Olmert's promise to Shas never to negotiate over Jerusalem and was never revealed to the Israeli public while he was in office

Israeli Prime Minister Benjamin Netanyahu has announced he will back a Palestinian state - but only if it is completely demilitarised.He said a Palestinian state must have no army, no control of its air space and no way of smuggling in weapons. In a landmark speech, weeks after the US president urged him to agree a two-state plan, he said the Palestinians must accept Israel as a Jewish state. Palestinian leaders reacted angrily, accusing him of sabotaging peace plans.

our correspondent says the question is whether the White House regards this as sufficient to make up for the lack of movement on the issue of Jewish settlements in the occupied West Bank.

But in his speech at Bar-Ilan university Mr Netanyahu said settlers were not "enemies of peace" and did not move from his position of backing "natural growth" in existing settlements.

Barack Obama is to invite Israeli, ­Palestinian and Egyptian leaders to the White House within the next two months in a fresh push for Middle East peace.

The three leaders are being invited for separate talks rather than round-table negotiations. The aim is to complete all three visits before Obama goes to France for the D-Day anniversary on 6 June.

The chances of a deal in the short term appear slim and Obama yesterday acknowledged that circumstances in Israel and the Palestinian territories were not conducive to peace. "Unfortunately, right now what we've seen not just in Israel, but within the Palestinian territories, among the Arab states, worldwide, is a profound cynicism about the possibility of any progress being made whatsoever," he said."What we want to do is to step back from the abyss, to say, as hard as it is, as difficult as it may be, the prospect of peace still exists, but it's going to require some hard choices."

Mr Lieberman's speech came a day after Mr Netanyahu offered the Palestinians self-rule in place of the statehood that had at least rhetorically been on offer in a declaration accompanying the relaunch of peace talks under the leadership of Ehud Olmert at the Annapolis conference. But Mr Lieberman said "The Israeli government never ratified Annapolis, nor did parliament."

Mr Lieberman took issue with the very idea of concessions towards the Palestinians saying that "whoever thinks that through concessions peace will be achieved is mistaken. He is only inviting pressure and more wars."

Mr Lieberman said that instead of the Annapolis process, Israel would follow the "road map", the name of a 2003 blueprint of reciprocal steps advancing to a two-state solution. But Israel's cabinet never ratified that agreement, and the government has instead used the term to refer to a cabinet decision spelling out reservations about the plan.

The leader of the Palestinian group Hamas's political bureau has refused to recognise Israel as Jewish state. At the same time, Khaled Meshaal has endorsed the idea of a two-state solution, accepting the creation of a Palestinian state within 1967 borders, with East Jerusalem as its capital.

He also said there were optimistic signs in relation to negotiations between Hamas and its rival Fatah of Mahmoud Abbas, the Palestinian president. Talks with Fatah would continue this coming Sunday in the Egyptian capital Cairo, Meshaal said.

In a statement, the Israeli military said Palestinian security forces "will be able to extend their hours of operation" in the towns but emphasised that Israeli forces would continue to operate in the West Bank "in order to thwart terrorist operations". Israel already has turned over limited security control to Palestinians in three other West Bank towns, but the military said that forces in Qalqiliya, Bethlehem, Jericho and Ramallah would be the first to operate around the clock without Israeli clearance.

Despite fervent denials by Obama administration officials, there were indeed agreements between Israel and the United States regarding the growth of Israeli settlements on the West Bank.

In the spring of 2003, U.S. officials (including me) held wide-ranging discussions with then Prime Minister Ariel Sharon in Jerusalem. The "Roadmap for Peace" between Israel and the Palestinians had been written.

In June 2003, Mr. Sharon stood alongside Mr. Bush, King Abdullah II of Jordan, and Palestinian Prime Minister Mahmoud Abbas at Aqaba, Jordan, and endorsed Palestinian statehood publicly: "It is in Israel's interest not to govern the Palestinians but for the Palestinians to govern themselves in their own state. A democratic Palestinian state fully at peace with Israel will promote the long-term security and well-being of Israel as a Jewish state."

Hamas has dismissed a speech delivered by Prime Minister Benjamin Netanyahu Sunday, in which he declared support for a demilitarized Palestinian state, as a "racist" attempt deny Palestinian national rights.

"[Netanyahu wants] to recognize Palestine as pure Jewish land, denying the Palestinian people any rights in their land," the Palestinian news agency Ma'an on Monday quoted the Islamist group as saying in a statement.

In the speech, Netanyahu conditioned the establishment of a Palestinian state on recognition by the Palestinians of Israel as the state of the Jewish people. He also vowed that Israel would not build any new West Bank settlements, or expand existing ones, but refused to stop accommodating for their natural growth.

Iran's legislative body, the Guardian Council, has said there were no major polling irregularities in the 12 June election and ruled out an annulment.

Guardian Council spokesman Abbas Ali Kadkhoda'i was quoted on state television as saying there was "no major fraud or breach in the election".

UN Secretary General Ban Ki-moon earlier called for an end to violence. Mr Ban urged the authorities in Iran to respect fundamental civil rights, "especially the freedom of assembly and expression", and end arrests.

"In my vision of peace, two people live in good neighbourly relations, each with their own flag ... Neither threaten the other's security," he told his audience at Bar-Ilan University, outside Tel Aviv. "In any peace agreement, the territory under Palestinian control must be disarmed, with solid security guarantees for Israel."

Netanyahu called for "immediate negotiations for peace without prior arrangements" from the Palestinians, and said he was willing to meet Arab leaders anywhere to discuss the issue.

"I call the leaders of the Arab nations to co-operate with the Palestinians and with us on economic peace,"

A daughter of former Iranian president Akbar Hashemi Rafsanjani, a rival of President Mahmoud Ahmadinejad, has been released from detention, state television said on Monday. Iran's English-language Press TV had reported that Faezeh Rafsanjani and four other relatives of the former president were detained during an unauthorized protest in Tehran on Saturday. The four other relatives were freed earlier.

Last week, the semi-official Fars News Agency said Faezeh and her brother Mehdi had been barred from leaving Iran.

According to a report in the pan-Arab newspaper Asharq al-Awsat, Rafsanjani is contemplating the formation of a distinct body of clerics that would serve as an alternative to the ruling council of ayatollahs. The report stated that the former president, who is based in the town of Qom, which is thought of as a religious stronghold, has already consulted other prominent clerics on possible future steps against his chief rival, Khamenei.

President Barack Obama's "reassertion" of U.S. leadership in the Middle East offers a rare opportunity to get peace between Israel and the Palestinians, Egyptian President Hosni Mubarak said.

"A historic settlement is within reach, one that would give the Palestinians their state and freedom from occupation while granting Israel recognition and security to live in peace," wrote Mubarak. Advertisement "Egypt stands ready to seize that moment, and I am confident that the Arab world will do the same," he added.

Egypt has been trying to broker a power-sharing deal between the Fatah-led Palestinian Authority and Hamas and Mubarak said the Palestinians must overcome their divisions to achieve their aspirations for statehood.

Palestinians reject any deal between Israel and the United States that would allow even limited Jewish settlement construction in the occupied West Bank, a top Palestinian negotiator said Sunday.

Netanyahu said Palestinians "must finally abandon the demand" to resettle families of hundreds of thousands of refugees of a 1948 war over Israel's establishment, which he said could "undermine" the Jewish state's existence. Addressing a memorial to the founder of Zionism, Netanyahu reiterated demands for Palestinians to explicitly recognize Israel as a Jewish state, calling this "the key to peace."

Western officials said the United States was moving in the direction of making allowances so Israel could finish off at least some existing projects which are close to completion.

Palestinian leaders on Monday categorically ruled out holding any peace talks with Israel until a full and lasting freeze in Jewish settlement.

"A total settlement freeze and a commitment to an independent Palestinian state will bring us back to the negotiating table immediately," Shaath said. He ruled out accepting exemptions to the freeze, including exceptions for building in East Jerusalem or expanding existing settlements to cope with "natural growth" of families there.

While Netanyahu and Obama's envoy George Mitchell are, say diplomats, discussing a freeze limited in time, to say six months or a year, Shaath said the only time limit Palestinians would accept was a freeze lasting until a final peace is signed.