On its first day of full rule in Gaza, the Islamic militant Hamas today announced that it was granting amnesty to senior Fatah leaders, signalling that it is seeking conciliation with the defeated forces of moderate Palestinian President Mahmoud Abbas.

Hamas pounded Gaza City’s three main security compounds and President Mahmoud Abbas’ headquarters with mortars, grenades and assault rifles today, calling on beleaguered Fatah forces to surrender, in an apparent attempt to take control of the entire Gaza Strip.

Little progress was reported from the second summit meeting in a month between Israeli prime minister Ehud Olmert and Palestinian president Mahmoud Abbas.

Little progress was reported tonight from the second summit meeting in a month between Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas.

Gunmen from the rival Hamas and Fatah movements battled each other in Gaza today, continuing an increasingly bloody power struggle over the Palestinian government that left the coastal strip littered with dead over the weekend, while civilians cowered in their homes.

Dozens of masked gunmen claiming to be members of al-Qaida stormed an empty Gaza Strip beach resort this morning and blew up a reception hall, saying they were sending a message to a close ally of Palestinian President Mahmoud Abbas’, witnesses said.

Tens of thousands of Fatah supporters packed Gaza’s main soccer stadium today in a massive show of strength to boost the movement in its increasingly violent struggle against the Islamic militant group Hamas.

Al-Qaida's second in command, Ayman al-Zawahri, has attacked the leaders of Egypt and the Palestinians, accusing them of betraying Islam and collaborating with the US and Israel, according to an Internet statement published in his name today.

The ruling Hamas party has accused a key ally of president Mahmoud Abbas of trying to assassinate the prime minister, Ismail Haniyeh, inflaming tensions between rival Palestinian factions to their highest point in a decade.

Hamas and Fatah gunmen exchanged fire on the streets of Gaza City and the West Bank city of Ramallah today, a day after unidentified gunmen shot at Prime Minister Ismail Haniyeh’s entourage.

Angry Hamas officials on Friday blamed a powerful Gaza strongman and senior Fatah official for a shooting attack on Ismail Haniyeh’s entourage that killed one of the prime minister’s bodyguards and wounded his son.

Militants holding an Israeli soldier today said they would give no further information about him because Israel ignored a deadline to release Palestinian prisoners.

Palestinian militants today gave Israel 24 hours to start releasing hundreds of Palestinian prisoners, implying they will kill an abducted Israeli soldier tomorrow morning if their demands are not met.

A Palestinian militant with ties to Hamas was killed yesterday in a car bomb in Gaza, unleashing factional unrest that left three others dead and 35 wounded, in the first direct threat to the Islamic group’s new government.

A PALESTINIAN militant with ties to Hamas was killed in a car bomb yesterday, unleashing factional unrest that left three others dead and more than 20 wounded - in the first direct threat to the Islamic group’s new government.

The ruling Fatah Party and the Islamic Hamas group today made impassioned last-minute appeals for support on the final day of campaigning in the Palestinian parliamentary elections.

Palestinians plastered posters on walls and electric poles, strung up banners and cruised the streets with loudspeaker today, trying to drum up last-minute support for candidates on the final day of campaigning before this week’s parliament election.

The Hamas militant group won local elections in the West Bank’s largest cities, according to preliminary results released today, dealing a harsh blow to the ruling Fatah party just six weeks ahead of a parliamentary poll.

THE ruling Palestinian Fatah Party negotiated feverishly yesterday, trying to persuade young activists from breaking away to form their own faction, a split that might boost the prospects of Hamas militants in parliamentary elections next month.

With a ribbon-cutting ceremony, the Gaza-Egypt border was reopening today – a milestone for the Palestinians who for the first time take control of a border crossing without Israeli veto powers and gain some freedom of movement.

A European Union official today said that the initial 20-person delegation of EU monitors for the Gaza-Egypt border crossing would be at their posts and operating for tomorrow’s historic opening.

The European Union today agreed to monitor a Gaza-Egypt border crossing that serves as the main gate to the world for Palestinians in the coastal strip as an EU delegation toured the area.

The US and its peace partners must help the Palestinians and Israelis resume talks aimed at achieving Palestinian statehood, Jordan’s prime minister told a top UN envoy yesterday.

Tens of thousands of Palestinians crowded into Gaza City’s small fishing harbour today to celebrate the impending Israeli withdrawal from the Gaza Strip, waving flags and hearing promises from their leader, Mahmoud Abbas, that the West Bank and Jerusalem will be next.

A major Palestinian militant group today declared it would fire no more rockets during Israel’s planned withdrawal from the Gaza Strip, after a deadly barrage inadvertently killed a three-year-old Palestinian boy.

Pragmatism won out over ideology today as hundreds of Gaza residents took a first step toward co-operating with the government’s plan to evacuate the coastal strip next month.

Israeli Prime Minister Ariel Sharon told Palestinian leader Mahmoud Abbas that Israel would hand over two more West Bank towns and consider releasing more prisoners if the Palestinians take step to end violence, officials said today.

Palestinians fired three Qassam rockets at southern Israel today, hitting one home, while Israeli soldiers traded fire with a Palestinian fugitive hiding in a house in the northern West Bank, the Israeli army said.

Israeli deputy prime minister Shimon Peres said today the Palestinian government of Mahmoud Abbas is on the right track, despite last week’s Tel Aviv suicide bombing and other attempts by Palestinian militants to torpedo a fragile truce.

THE Israeli parliament gave final approval last night to Prime Minister Ariel Sharon’s plan to withdraw from the Gaza Strip and four West Bank settlements.

ISRAEL is going to slow its planned pullout from five West Bank towns after a day of violence strained an informal ceasefire, and it will stop the process altogether if Palestinians don’t halt all attacks, Israeli security officials said yesterday.

Israeli gunfire killed a 10-year-old Palestinian schoolgirl today, prompting militants to fire several rounds of mortar shells at Jewish settlements and endangering an unofficial ceasefire between the two sides.

Israel prepared today to start handing control of West Bank towns to Palestinian police, in a huge step to ease four years of bloodshed, confrontation and tension.

Israel will transfer security control over several West Bank towns to the Palestinians in coming days, Israel’s defence minister said today, hours after he met with a Palestinian negotiator to work out the details of Israel’s troop redeployment.

Palestinian and Israeli officials today expressed widely different expectations for an upcoming summit between their leaders, reflecting the sharp differences that remain as the two sides try to end four years of hostilities and resume peace talks.

Palestinian leader Mahmoud Abbas and Israeli Prime Minister Ariel Sharon will hold their first summit during the second week of February, a senior Palestinian official said today.

Interim Palestinian leader Mahmoud Abbas escaped unharmed after gunmen firing assault rifles burst into a tent in Gaza City where he was greeting people who came to mourn Yasser Arafat.

Palestinians need time to “build a new house” following the death of Yasser Arafat, and the key to a ceasefire with Palestinian militants is in Israel’s hands, said Gaza strongman Mohammed Dahlan in an interview published today.

Top candidates to succeed Yasser Arafat as Palestinian leader:

The caretaker Palestinian leadership decided today to travel to Yasser Arafat’s bedside, reversing a decision to call off the trip after being lambasted by the ailing 75-year-old leader’s wife.

Yasser Arafat has lapsed into a coma, a senior Palestinian official said today after the ailing leader was rushed into intensive care at a French military hospital following a sharp deterioration in his health.

Yasser Arafat has lost consciousness repeatedly in recent hours after he was rushed into intensive care at a French military hospital, Palestinians said today. They described his condition as extremely serious.

Palestinian leader Yasser Arafat is in intensive care undergoing a new round of tests today after his still-unexplained condition took a sudden turn for the worse.

Yasser Arafat’s health has deteriorated significantly, Palestinian officials said tonight.