Israel defers decision on Palestinian sanctions

Interim Israeli Prime Minister Ehud Olmert will wait until after Hamas assumes control of the Palestinian parliament to decide…

Interim Israeli Prime Minister Ehud Olmert will wait until after Hamas assumes control of the Palestinian parliament to decide on new measures aimed at weakening the militant group, officials said today.

Mr Olmert had been poised to announce tougher restrictions on the Palestinians, including a travel ban and a freeze on funding, ahead of tomorrow's swearing-in of a Hamas-led parliament.

But Israeli government sources said Mr Olmert deferred a decision until Sunday's cabinet meeting after disagreements emerged between some of his top advisers over what measures should be taken against Hamas.

Mr Olmert was also urged by the European Union to delay an announcement, a diplomatic source said.

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Under the plan proposed by the Israeli Defence Ministry, Palestinians would be barred from working in Israel or travelling across Israel between Gaza and the West Bank after a Hamas-led parliament is sworn in tomorrow.

The plan also calls for halting further tax revenue transfers to the cash-strapped Palestinian Authority to pressure Hamas, winner of the January 25th Palestinian election, to renounce violence, recognise the Jewish state and abide by interim peace deals.

Hamas leader Ismail Haniyeh said the Islamic militant group's supporters would weather what he called Israel's "policies of oppression and collective punishment".