Israel’s army received approval today to broaden its ground operations against Gaza Strip militants who have been barraging Israeli border towns with deadly rocket fire, but no large-scale incursion is in the works, military officials said.

Moderate Palestinian President Mahmoud Abbas and Prime Minister Ismail Haniyeh of Hamas made a new push today to restore a cease-fire with Israel that collapsed under a barrage of Hamas rocket fire.

Hamas militants defied Israeli air strikes and threats to kill their top leaders, firing more rockets into Israel, as the Palestinian president arrived in Gaza in an effort to defuse the escalating conflict.

Israel's deputy defence minister today threatened to target Hamas' political leaders, calling them "terrorists in suits" after a Hamas rocket attack killed an Israeli woman.

Allies and opponents today clamoured for Israeli Prime Minister Ehud Olmert’s resignation after scathing criticism from an official commission of his performance during last year’s Lebanon war.

A government probe in last summer's war in Lebanon accused the country's wartime leaders of "very severe failures" in their handling of the conflict, dealing a harsh blow that was sure to fuel new calls for embattled Prime Minister Ehud Olmert to resign.

Israeli Prime Minister Ehud Olmert faced calls for his resignation in the wake of harsh findings of an official inquiry into the shortcomings of his leadership during last summer’s costly, but inconclusive, war in Lebanon.

Talks are being held today by Israeli and Palestinian leaders today in a bid to determine the future of a ceasefire in Gaza.

Palestinian President Mahmoud Abbas and Israeli Prime Minister Ehud Olmert will meet on Sunday, an aide to the Israeli leader confirmed today - keeping their promise to US Secretary of State Condoleezza Rice to hold regular talks.

Israel’s defence minister today accused Syria of allowing the rearmament of Hezbollah guerrillas in Lebanon and said Israel has the right to act “forcefully” against the Shiite militia to counter the threat.

Israeli Defence Minister Amir Peretz discussed closer military co-operation with Nato today during a visit to the headquarters of the Western alliance.

Israeli Minister for Defence Amir Peretz denounced the Palestinian suicide bombing as an “escalation” that threatened a recent cease-fire, and promised to take all “necessary” steps to prevent similar attacks.

The new commander of the Israeli army will be reserve general Gabi Ashkenazi, the government said today.

Israel prime minister Ehud Olmert and defense minister Amir Peretz faced new calls to resign today after Israel’s army chief stepped down, succumbing to widespread outrage over the handling of last summer’s inconclusive war in Lebanon.

Israel’s outgoing army chief today promised an “orderly transition” for his successor, the army said.

Israeli defense minister Amir Peretz, leader of Israel’s Labour Party, has chosen Arab MP Raleb Majadele to be a cabinet minister, Israeli media reported today.

Former Israel Prime Minister Ehud Barak, who announced his return to politics this week, enjoys a wide lead over the Labour Party’s current leader and would win the party’s leadership race if elections were held today, according to a poll published in an Israeli newspaper today.

Former Prime Minister Ehud Barak announced his much-anticipated return to politics, saying he will run for the leadership of the Labour Party, a first step towards trying for Israel’s highest office again.

Israel’s Defence Minister Amir Peretz said today he has asked the army to dismantle some of the checkpoints that have severely disrupted Palestinian travel in the West Bank, part of a package of goodwill gestures Israel hopes will boost the moderate Palestinian President, Mahmoud Abbas.

Israelis and Palestinians tonight threatened to scrap a truce that has largely ended five months of Gaza violence, with Palestinian militants insisting it must also apply to the West Bank and Israeli leaders complaining that Gaza rocket squads are still active.

Israel today promised a punishing response to the first deadly Palestinian rocket attack on the Israeli town of Sderot since the Gaza Strip evacuation last year, even as Palestinian leaders and international envoys pursued diplomatic efforts to spur deadlocked peacemaking.

Israeli defence minister Amir Peretz today said a dormant Saudi initiative for Mideast peace could be a “basis for negotiations,” indicating a new basis for talks with the Palestinians after years of stalemate.

Israelis would vote Ehud Olmert out of office if elections were held now, polls indicated today, as the defiant prime minister defended his performance in the Lebanon war and lashed out at his critics.

UN Secretary General Kofi Annan today called on Israel to end its air and sea blockade of Lebanon and appealed for the quick release of two Israeli soldiers captured by Hezbollah guerrillas.

The US proposes deploying international observers at the main cargo crossing between Israel and Gaza to prevent repeated security closures of Gaza’s economic lifeline, Palestinian and Israeli officials said today.

ISRAELI Defence Minister Amir Peretz yesterday created a committee to investigate Israel’s conduct during the 34-day fight against Hezbollah following growing criticism of ministers and generals.

Israel has begun an expanded ground offensive in southern Lebanon after expressing dissatisfaction over an emerging cease-fire deal, government officials said.

Israeli warplanes intensified airstrikes and launched a new commando raid in south Lebanon today, killing at least 28 people in one of the heaviest tolls in days.

Israel will “expand and strengthen” its attack on Hezbollah guerrillas in Lebanon, the defence minister said today, diminishing hopes that a 48-hour halt in air strikes could be turned into a longer-term ceasefire.

Israeli Prime Minister Ehud Olmert told a parliament committee today that Israel will not reoccupy any part of south Lebanon, participants said.

At least two people were killed today as rockets fired by Hezbollah guerrillas pounded the northern Israeli city of Haifa, police said.

Nearly nine out of 10 Israelis say the army’s week-old operation against Hezbollah is justified and nearly 60% say Israel should fight until the Lebanese guerrilla group is destroyed, according to an opinion poll published today.

Lebanon’s Cabinet today issued a statement saying the country faced “real annihilation” by Israel.

ISRAEL intensified its attacks against Lebanon yesterday, imposing a naval blockade, twice hitting Beirut’s airport and blasting two Lebanese army air bases near Syria.

Israel has hit hundreds of targets in Lebanon since last night, as part of its effort to force the release of two soldiers captured by Hezbollah guerrillas, a top Israeli general said today.

Israeli aircraft blasted the office of Palestinian Prime Minister Ismail Haniyeh of Hamas early today, the latest military move aimed at winning freedom for an Israeli soldier held captive by Hamas militants in Gaza.

In a direct message to Hamas’ interior minister in Gaza, Israeli jet fighters destroyed his office early today, intensifying an air invasion while delaying a broad ground offensive to give Arab mediators a last chance to gain the release of a kidnapped soldier.

Defence minister Amir Peretz today approved the next part of the Israeli army’s invasion into the Gaza Strip, military officials said.

Israeli Defence Minister Amir Peretz has ordered a review of the route of the country’s separation barrier with the West Bank to better consider Palestinians concerns, it was reported today.

Israel will no longer exhibit restraint against Palestinian militants involved in anti-Israel operations, defence minister Amir Peretz said today.

The Palestinians' Hamas-dominated parliament today backed off a threat to derail President Mahmoud Abbas' plan to hold a national referendum on a proposal that implicitly recognises Israel, putting off a crucial vote until next week.

The Palestinians’ Hamas-dominated parliament today mobilised to try to block President Mahmoud Abbas’ efforts to hold a national referendum on a proposal that would implicitly recognise Israel’s right to exist.

Israeli Defence Minister Amir Peretz has postponed a large-scale air offensive planned by the army against Gaza militants in an effort to give the Palestinians more time to stop rocket attacks from the coastal territory, military officials said today.

Israel, pressured by international alarm over a brewing Palestinian humanitarian crisis, has agreed to release millions of pounds in funds it has withheld from the Palestinians and is considering easing restrictions on the transport of goods between Israel and the Gaza Strip.