Incoming Israeli Prime Minister Benjamin Netanyahu vowed to seek a "permanent arrangement" with the Palestinians and peace with the Arab world as he took office Tuesday and submitted his government roster for parliamentary approval.

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Israel, Hamas and Palestinian President Mahmoud Abbas have entered talks with Egypt on a cease-fire in the Gaza Strip. Meanwhile, the United Nations has suspended aid deliveries after a driver was killed by Israeli forces.

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Hamas leaders in Gaza declared an end to a troubled six-month truce with Israel and vowed to respond to any attack, as Egypt -- which helped broker the ceasefire -- called for restraint on Friday.

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Hamas militants fired rockets into southern Israel Wednesday, hours after Israeli forces killed six gunmen in fighting that threatened a five-month-old truce that has brought some relief to Gaza residents.

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Israel's governing party, Kadima, is voting on a new leader Wednesday with polls indicating that the country's foreign minister, Tzipi Livni, will be the likely winner.

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Prime Minister Ehud Olmert averted a split in Israel's coalition and staved off a key coalition partner's threat to bring down the government, giving him at least a few more months to pursue peace agreements with the Palestinians and Syria.

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Israel agreed Monday to allow some power plant fuel, medicine and food into the Gaza Strip, at least temporarily easing a blockade on the Hamas ruled-territory, which was imposed in retaliation for recent rocket attacks on southern Israel.

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President Bush made his first trip to Saudi Arabia on Monday in a bid to gain support for Israeli-Palestinian peace talks, while the White House announced a $20 billion weapons deal with the powerful Saudi kingdom. Experts examine the state…

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Secretary of State Condoleezza Rice visited for two days with Palestinian President Mahmoud Abbas and Israeli Prime Minister Ehud Olmert ahead of a U.S.-sponsored peace conference tentatively scheduled for November.

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Israel released 256 Palestinian prisoners Friday as part of a plan to help bolster Palestinian President Mahmoud Abbas in his ongoing power struggle with Hamas militants who now run the Gaza Strip.

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