Israelis and Palestinians tonight threatened to scrap a truce that has largely ended five months of Gaza violence, with Palestinian militants insisting it must also apply to the West Bank and Israeli leaders complaining that Gaza rocket squads are still active.

A ceasefire in the Gaza Strip appeared to be holding this morning, stopping Palestinian rocket fire and Israeli operations for the first time in five months.

Israel has modified the route of its West Bank separation barrier, moving forward with Interim Prime Minister Ehud Olmert’s plan to quickly define the country’s final borders as his Kadima Party secured a parliamentary majority.

Acting Prime Minister Ehud Olmert today pledged to consult Israel’s citizens and the world about his plan to pull out of much of the West Bank, remove settlements and set his country’s borders within four years.