The Palestinian cabinet submitted their resignations today following the apparent Hamas victory in legislative elections, Prime Minister Ahmed Qureia’s office said, setting the stage for the Islamic group to lead a new Palestinian government.

PALESTINIAN security forces stormed a building where an Italian hostage was being held yesterday, freeing the man after a shoot-out with his kidnappers.

WITH Yasser Arafat in "the final phase of his life", the Palestinian leader's political heirs completed his burial arrangements yesterday and made plans for a funeral as soon as tomorrow.

Israel will allow Palestinian police to carry arms, security officials said today, a significant step toward shoring up the prestige of Palestinian Prime Minister Ahmed Qureia.

Israeli forces killed three Palestinians in operations in the Gaza Strip, as the Palestinian leadership crisis intensified, scuttling peace efforts and endangering a donors conference.