The US slightly softened its hard-line position against Hamas, agreeing with other potential Middle East peacemakers to set up a new fund intended to avert a humanitarian crisis among the Palestinians.

Thousands of Fatah supporters burned cars and fired guns in the air across the Gaza Strip, demanding the resignation of corrupt party officials and insisting on no coalition between their defeated party and victorious Hamas.

Thousands of activists from Palestinian leader Mahmoud Abbas’ Fatah Party protested throughout the Gaza Strip today, burning abandoned cars, shooting in the air and demanding corrupt party leaders resign in the wake of their devastating election loss to the militant Hamas movement.

Israeli forces moved into the southern Gaza city of Khan Younis early today, firing a missile from a helicopter as military activity continued alongside preparations for an Israeli pullout.

Yasser Arafat, pressed by his parliament to commit to promised reforms in writing, has largely been evasive, disappointed MPs said today, after two meetings with the Palestinian leader.