Palestinian leader Mr Yasser Arafat called the first meeting of his reshuffled cabinet today after Israel lifted the latest military siege of his headquarters.
The Israeli army pulled out of the West Bank city of Ramallah lastnight as Israeli Prime Minister Mr Ariel Sharon held talks with British Prime Minister Mr Tony Blair in London. The end of the three-day standoff could boost diplomatic efforts to end 20 months of conflict.
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A jeep, destroyed by Israeli forces, lies outside Palestinian President Yasser Arafat's compound in Ramallah Photograph: Reuters
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Mr Arafat wasted no time in calling the first meeting of his new cabinet, which he reshuffled on Sunday as part of reforms demanded by the United States and Israel.
The cabinet session, postponed on Monday after Israel launched its raid in Ramallah, was set for Thursday night, senior Arafat aide Mr Nabil Abu Rdainah said.
"The meeting will discuss strategy and the beginning of reconstruction as well as the current political efforts to put things back on the right track," said Mr Abu Rdainah.
Mr Sharon flew home buoyed by a White House meeting this week in which the US President, Mr George W. Bush, expressed support for Israel's right to defend itself against Palestinian suicide attacks. "It was an important trip," Mr Sharon told reporters. "I think we made our position as clear as possible."
Despite that, confusion over US policy towards the Middle East deepened as the White House distanced itself from an idea mentioned by the US Secretary of State Mr Colin Powell for establishing a provisional Palestinian state.