Israel said today it will press forward with construction of new housing for Jews in east Jerusalem, drawing Palestinian accusations that the plans could undermine newly relaunched peace talks.

US Secretary of State Hillary Clinton sketched out a plan how the US might cope with a nuclear Iran — by arming its allies in the Gulf and extending a “defence umbrella” over the region.

Palestinian and Israeli leaders were sitting down for face-to-face peace talks with George Bush today, as the US president attempted to build on the diplomatic momentum from his Arab summit.

The fate of a ceasefire proposal drawn up by CIA director George Tenet lies in the hands of the Palestinians, says a leading Israeli.