Israel called off airstrikes on the homes of two militants today after hundreds of Palestinians crowded around the buildings forming human shields, a new tactic that forced the Israelis to re-evaluate their aerial campaign in the Gaza Strip.

The Hamas-controlled Palestinian government will resign within two or three days to make way for a new unity government that could help end a punishing Western aid boycott and resume long-frozen peace talks with Israel, a senior Palestinian negotiator said today.

The rival Fatah and Hamas movements have agreed on a candidate for prime minister of their emerging coalition government, turning to a US-educated professor to end months of infighting and help lift a painful international aid boycott.

The rival Fatah and Hamas movements today agreed on a candidate for prime minister of their emerging coalition government in Palestine, turning to a US-educated professor to end months of infighting and help lift a painful international aid boycott.