Israeli aircraft struck four times in Gaza early today, the army said, killing one Hamas militant.

Israeli politicians today debated whether to grant temporary leave to embattled President Moshe Katsav, who called impending rape and other sexual assault charges the product of “poisonous, horrible lies”.

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.

Israel today promised a punishing response to the first deadly Palestinian rocket attack on the Israeli town of Sderot since the Gaza Strip evacuation last year, even as Palestinian leaders and international envoys pursued diplomatic efforts to spur deadlocked peacemaking.

Israel struck a Lebanese army base outside Beirut and flattened a house near the border, killing at least 10 people in a new wave of bombings.

ACTING prime minister Ehud Olmert expects to draw Israel’s permanent borders by 2010 and, as part of that effort, will build a controversial settlement outside Jerusalem.

ISRAEL’S defence minister advised the incoming Palestinian prime minister yesterday to fear for his life if Hamas militants start attacking Israel again.

ACTING Israeli Prime Minister Ehud Olmert plans to withdraw from more West Bank settlements immediately after forming Israel's next government and to set Israel's final borders within four years, a top political ally said yesterday.

A top political ally of acting Prime Minister Ehud Olmert today confirmed plans for a further unilateral withdrawal, or disengagement, from West Bank settlements.

ISRAEL’S Cabinet yesterday narrowly approved a contested prisoner swap with Hezbollah, even though it does not include a Israel’s most famous missing serviceman, an air force navigator captured 17 years ago.

Israel’s Cabinet today narrowly approved a contested prisoner swap with Hezbollah, even though it does not include a Israel’s most famous missing serviceman, an air force navigator captured 17 years ago.

ISRAEL’S cabinet yesterday voted to release several hundred Palestinian prisoners, a move that could help push forward a US-backed peace plan.

Israel’s Cabinet voted today to release groups of Palestinian prisoners – but Prime Minister Ariel Sharon said the release would be conditional on a Palestinian crackdown against militant groups.

Palestinian police were preparing to move back into the West Bank town of Bethlehem today, the second area Israel is turning over under a Middle East peace plan, following an upbeat summit meeting that boosted hope for an end to 33 months of bloodshed.

THE Israeli and Palestinian prime ministers made their first public show of reconciliation yesterday, confirming their commitment to peace as Israeli armoured vehicles and trucks loaded with military gear began a withdrawal from Bethlehem.

As the Israeli and Palestinian prime minister prepared to meet to discuss their next peace moves, Israeli army trucks were removing equipment from a military base near Bethlehem today.

THE Palestinian prime minister, who is making a final push to halt attacks on Israelis, met yesterday with a US envoy dispatched to the region to get a Mideast peace plan back on track.

A suicide bomber blew himself up at a bus stop in northern Israel today, killing himself and an Israeli policeman.