An Israeli soldier and a Palestinian fugitive were killed in a West Bank shoot-out today, part of a marked increase in tension in recent weeks despite a three-month-old truce.

Israel’s prime minister Ariel Sharon has cut all contact with newly-elected Palestinian leader Mahmoud Abbas in a startling U-turn, saying he must halt terror attacks if he wanted peace talks.

Israeli Prime Minister Ariel Sharon cut all contact with the newly elected Palestinian leader today, promising the silence would continue until Mahmoud Abbas moves to halt militant attacks.

Senior Israeli and Palestinian officials are scheduled to meet in Britain next week for private talks, the first such contact between the two sides since the death of Yasser Arafat.

Israel’s Shin Bet security service has tightened protection of the prime minister, MPs and parliament ahead of next week’s crucial vote on a Gaza withdrawal.