Defying intense US pressure, Israel suspended a troop pullout from Bethlehem and a neighboring Palestinian-ruled town in the West Bank because of violence that raged early today.
Israel's last-minute decision to remain in the towns dealt a blow to US efforts to cement Arab and Islamic support for their operation in Afghanistan and an anti-terror coalition formed after the September 11 attacks on the United States.
The Palestinian Authority and its leader, Yasser Arafat, said Israel's decision not to withdraw, which would also put off a pullout from in and around five other Palestinian-ruled towns, proved it wanted to escalate a year of violence.
"The pullback has been suspended as a result of continuous Palestinian fire, repeated shooting throughout the day and lack of implementation of the agreement reached with Palestinian security forces in Beit Jala and Bethlehem," a senior official in Prime Minister Mr Ariel Sharon's office told reporters.
The delay went against a deal Israel and the Palestinians reached at security talks Friday for Israeli forces to withdraw from Bethlehem and neighboring Beit Jala, which Israel vowed to carry out if Palestinians maintained quiet.
Mr Arafat told reporters after meeting European diplomats in Gaza that Israel's decision to call off the withdrawal was "part of their policy to not achieve real peace."
The Palestinian Authority condemned the decision in an official statement, saying the "dangerous and sudden position of the Israeli government makes us sure of Israel's insistence to increase its escalation policy and destroy all international efforts to stop Israeli aggression."