Anger as Clinton brokers fragile peace

The Middle East was nervously waiting last night to see whether a US-brokered agreement between Israel and the Palestinians at the Sharm el-Sheikh summit would establish peace or be consumed by another wave of bloodshed.

The Middle East was nervously waiting last night to see whether a US-brokered agreement between Israel and the Palestinians at the Sharm el-Sheikh summit would establish peace or be consumed by another wave of bloodshed.

Both sides said the true test of the deal would be its effect on the violence on the ground, where more than 100 people have died in the past three weeks, including two Palestinians killed yesterday. In the West Bank and Gaza there were indications of strong opposition to the agreement among Palestinians who have been confronting Israeli troops day after day.

Mohammed Diea, from Bethlehem, said: "The peace talks have merely been between Palestinian and Israeli leaders, not between the Palestinian and Israeli people."

After 24 hours of negotiations Ehud Barak, Israel's Prime Minister, and Yasser Arafat, the Palestinian leader, agreed to take "immediate, concrete measures" to end the violence, including a withdrawal by Israeli forces which have been blockading Palestinian towns and an end to its closure of the occupied territories.

Mr Arafat agreed to a US-led inquiry into the violence, abandoning his demand for a wider international investigation. Both sides also agreed to explore a resumption of peace talks and to publish statements declaring an end to the violence. Israeli sources said there were also several secret agreements, to co-operate on security, to be overseen by the CIA.

In Israel last night Ariel Sharon, the right-wing Likud leader, said he was withdrawing from talks to enter a national emergency government with Mr Barak, because after the Sharm el-Sheikh agreement there was no point in continuing. Likud has said it will enter a coalition with Mr Barak only if he declares the concessions he offered at Camp David in July null and void. These included some form of Palestinian administration in Arab east Jerusalem, anathema to the Israeli right. Mr Sharon interpreted the summit statement as rejecting that demand.

Before flying home yesterday President Bill Clinton said there had been "real progress" at the summit but added: "We should have no illusions about the difficulties ahead."

Mr Barak said that Israel had "achieved its goals" at the summit, adding that Israel would pull back its forces after 48 hours "if we see there is calm".

Jibril Rajoub, the head of Palestinian security in the West Bank, said: "The ball is in the Israeli court. It's they who created this crisis ... What is needed now is for them to take all the necessary measures to stop this violence."

The UN secretary general, Kofi Annan, said he was "relieved and thankful" Mr Barak and Mr Arafat had "stepped back from the abyss".

President Hosni Mubarak of Egypt, who opened the summit, pointedly blaming Israel for the recent violence, said the outcome "may not meet the expectations of all peoples".

However, it took a step towards resuming permanent peace efforts "after the region is stabilised", the Egyptian president said.