Israel and the Palestinians agreed a ceasefire at a historic summit today where Israeli Prime Minister Ariel Sharon said he hoped Palestinian leader Mahmoud Abbas would lead his people to to an independent state.

Israeli Prime Minister Ariel Sharon cancelled all his meetings to face a day of being interrogated by anti corruption police.

Palestinian militants called off a two-month-old truce after Israel killed a Hamas leader with a volley of missiles yesterday, and tens of thousands of Hamas supporters marched in protest through the streets of Gaza City, vowing revenge.