Israeli Prime Minister Benjamin Netanyahu won the leadership race of his Likud Party over his ultra-nationalist rival, hours after his government approved new incentives to entice people to move to West Bank settlements.

Israeli soldiers killed three Palestinians near a Jewish settlement in the Gaza Strip, and the government ordered the evacuation of four settlement outposts in the West Bank, Israeli media reported.

Israeli soldiers killed three Palestinians near a Jewish settlement in the Gaza Strip today, and the government ordered the evacuation of four settlement outposts in the West Bank, Israeli media reported.

ISRAELI Prime Minister Ariel Sharon drew fire from many sides yesterday but the United States backtracked on his threat to unilaterally separate Israelis from Palestinians if peace talks fail.