In Gaza, Palestinian President Yasser Arafat sounded a warning of a "very negative reaction" unless Israel swiftly resolved the crisis over the takeover by Jewish settlers of two buildings in the Ras al-Amoud neighbourhood.
But settlers showed no signs of budging from their new enclave just outside the walled Old City of Jerusalem and rejected a compromise offer from Mr Netanyahu to quit the site temporarily and leave behind a token presence.
Miami-based magnate Irving Moscowitz responded to the proposal by petitioning Israel's High Court of Justice to tie Mr Netanyahu's hands by issuing a temporary order banning him from evicting the families. A court spokeswoman said a judge would hold a hearing on the matter today. ReutersReuse content