Israeli jets and ground troops continued to hammer Hamas targets in the Gaza Strip and Islamic militants fired barrages of rockets at southern Israeli cities, defying a United Nations resolution calling for an immediate ceasefire.

ISRAELI opposition leader Benjamin Netanyahu yesterday pledged to continue negotiations with the Palestinians if he wins February elections, backing away from earlier hints he would abandon peace talks.

Israeli foreign minister Tzipi Livni declared victory today in the Kadima Party leadership race by a narrow margin of 431 votes.

Israeli opposition leader Benjamin Netanyahu today called for immediate elections in the wake of his rival Ehud Olmert’s decision to quit as prime minister.

Israeli prime minister Ehud Olmert reached out to reluctant Arab nations today for their support at a forthcoming US-brokered Middle East peace conference, saying a peace deal with the Palestinians could be reached next year.

Israel today approved the release of hundreds of Palestinian prisoners and promised not to build new settlements in the West Bank as a prelude to vital peace talks.

Senior European Union officials will gauge the progress of Middle East peace efforts during talks in Lisbon, Portugal, with top diplomats from the region.

ISRAELI Prime Minister Ehud Olmert yesterday announced he has prostate cancer and would soon have surgery, but said the disease is not life-threatening.

Human rights groups challenged Israel’s reduction of fuel supplies to Gaza and its intention to cut back on electricity, while Palestinians warned the measures could lead to a humanitarian crisis.

In their first meeting on Palestinian soil, Israeli Prime Minister Ehud Olmert told Palestinian President Mahmoud Abbas today he hopes to launch negotiations “soon” on establishing a Palestinian state, his clearest promise yet to tackle a final peace deal.