In Israel, the ultra-Orthodox Shas party has said it will resign from Ehud Barak's ruling coalition. The move would leave Mr Barak struggling to form a new government, three months before a final peace deal with the Palestinians is due to be signed. Parliamentary approval will be needed for the agreement. The Shas walkout followed their decision to support the opposition and vote for a preliminary bill to dissolve the 120-member Knesset, which would lead to the end of Ehud Barak's tenure as Prime Minister and early elections.
In Washington, Israeli and Palestinian negotiators will resume talks today, aimed at signing a framework peace deal. The discussions were suspended by the Israeli Prime Minister last month following rioting in the West Bank. It is not the first time the Shas party has made such a threat and commentators have suggested it could be a political ploy. However the party's political leader is insisting that the decision is final.