WITH time running out for British hostage Kenneth Bigley, US and Iraqi officials said last night they would not free female Iraqi prisoners as demanded by an al-Qaida ally whose group has already beheaded two Americans.

Efforts to find peace in the Middle East took more serious blows today as the Israeli prime minister vowed to hunt Hamas militants “to the bitter end” and the Islamic terror group threatened to unleash multiple attacks.

Deadly shootings in the northern Iraqi city of Mosul underscored the difficulties still faced by Iraqis and US-led coalition troops seeking to restore order in the country, although the worst of the fighting might be over.