Thousands of masked Hamas gunmen marched in formation at a large victory rally in an empty Jewish settlement today, the Islamic militant group’s latest show of strength since Israel completed its withdrawal from the Gaza Strip.

Egyptian forces were to begin deploying in the Gaza border area later today under an agreement with Israel, the Israeli Defence Ministry said.

With blazing speed, Israeli bulldozers are demolishing the 2,800 homes left behind after Israel cleared the Gaza Strip of its Jewish residents in less than a week.

ISRAEL could eventually relinquish more West Bank settlements, beyond the four to be dismantled in coming weeks, Prime Minister Ariel Sharon suggested in an interview published yesterday.

Tens of thousands of Palestinians crowded into Gaza City’s small fishing harbour today to celebrate the impending Israeli withdrawal from the Gaza Strip, waving flags and hearing promises from their leader, Mahmoud Abbas, that the West Bank and Jerusalem will be next.

Israel has agreed to hand four more West Bank towns to Palestinian control, a Palestinian official said tonight.

ISRAEL is proposing a troop pullout from two more Palestinian towns in the wake of meetings between the two sides' leaders and US President George W Bush, officials said yesterday.

Palestinian Prime Minister Mahmoud Abbas said today that he will not use force to disarm the militant groups under any circumstances, despite two shootings over the weekend that killed five Israeli soldiers.

ISRAEL has reacted angrily to a ruling

Israel has recalled its ambassador to Belgium and fired off angry letters to King Albert and his government following a Brussels court ruling that Ariel Sharon can be charged with war crimes when he leaves office.

A military court today approved the expulsion of three Palestinian relatives of suspected terrorists from the West Bank to Gaza, Israel TV reported.

A militia leader wanted by Israel has been killed by a car explosion.