The US, holding the line against a quick ceasefire deal in the Middle East, is increasingly isolated as world powers and the United Nations demand an immediate end to fighting between Israel and Hezbollah militants.

Embattled Congressman Tom DeLay decided today to give up his post as House majority leader – the leader of Republicans in the House of Representatives - clearing the way for new leadership elections among House Republicans eager to shed the taint of scandal, two officials said.

Republicans tightened their grip on the US Senate today, capturing a string of Democratic seats while extending their decade-long hold on Congress.

EXULTANT Republicans, who won control of the Senate, House and White House yesterday, plan to use their famous victory to bolster President George Bush's re-election chances with further tax cuts and ratification of his judicial nominees.

White House officials and congressional leaders agreed early Friday to final details of a $40bn package to combat terrorism and recover from attacks on the World Trade Center and the Pentagon.