The Israeli Prime Minister, Ariel Sharon, has been told he will not face charges over a property scandal after the country's Attorney General decided there was not enough evidence to continue the case.
The decision means that Mr Sharon has a better chance of fulfilling plans to withdraw from Gaza but hold on to some West Bank settlements, because the main opposition party is now more likely to join a coalition government.
Mr Sharon lost his majority in the parliament last week after four ministers from right-wing parties withdrew over the plans.
Car bomb blast near Israeli patrol
Earlier, a car bomb blew up near an Israeli patrol outside a Jewish settlement in the Gaza Strip.
Palestinian security officials had initially said that a suicide bomber was killed in the explosion, but Palestinian witnesses later explained they saw a man jump out of the vehicle and flee to safety moments before.
The Israeli military said that soldiers guarding a road leading to the Netzarim settlement opened fire at a suspicious vehicle which immediately exploded, indicating it contained a bomb. Officials said no soldiers were hurt.
The Al-Aqsa Martyrs Brigades and Islamic Jihad claimed joint responsibility for the abortive attack.
Israel confirms Balata deaths
In a separate development, authorities in Israel confirmed that one of its missiles killed two Palestinians at the Balata refugee camp, near the West Bank town of Nablus last night.
Both the men were reported to be members of the Al-Aqsa Martyrs' Brigades. Reports from witnesses at the scene said the missiles were fired from a helicopter.
One of the dead was identified as Halil Marshoud, a local leader of the group, which has carried out numerous attacks on Israeli targets in the West Bank and inside Israel including suicide bombings against civilians.
In recent months, Islamic militant groups such as Hamas have suffered losses in the West Bank and the Gaza Strip as Israel moved systematically to arrest and kill their leaders.
