Embattled Ariel Sharon has lashed out at his political rivals, accusing them of trying to unseat him with “despicable lies”.

An Israeli government official today accused Egypt of trying to meddle in politics – bringing into the open a rift over Egyptian President Hosni Mubarak’s overtures to the Israeli left and his harsh criticism of Prime Minister Ariel Sharon.

Israeli Cabinet ministers are joining Jewish settlers in urging their leaders to rethink their agreement to a US-sponsored truce with the Palestinians, following a string of Palestinian gun and mortar attacks.

A former ally of outgoing Prime Minister Ehud Barak announced today that he is seeking the leadership of the Labour Party.