Palestinian leader Yasser Arafat said Thursday he was willing to implement an unconditional cease-fire with Israel, a move that could pave the way toward a U.S.-brokered truce Palestinians rejected earlier in the week.

Representatives from Arab countries approved a Saudi-backed Mideast peace plan Thursday, agreeing to offer Israel "normal relations" in exchange for an Israeli pullback from disputed territories.

Israeli Prime Minister Ariel Sharon said Tuesday conditions were "not yet ripe" for lifting a travel ban on Yasser Arafat, despite U.S. pressure to allow the Palestinian leader to travel to an Arab summit in Beirut.

After an update on Thursday's developments in the Middle East, Margaret Warner talks to The New York Times Jerusalem Bureau Chief James Bennet about the many implications of Israel's decision to withdraw from U.S.-sponsored cease-fire talks after a suicide bomber…