Israeli Prime Minister Ariel Sharon plans to authorise the Mossad spy agency to lead the country’s efforts to stop Iran from acquiring nuclear weapons, it was reported today.

Israeli Prime Minister Ariel Sharon and his new foreign minister and fierce rival had their first dispute within hours of Binyamin Netanyahu’s appointment.

ISRAELI army sharpshooters took up positions overlooking Yasser Arafat’s compound yesterday amid reports some militants had slipped out after troops aborted a siege under US pressure.