Israeli rivals claim election win

The leaders of Israel's two main parties have claimed victory in a snap general election.

With most votes counted, results are still unclear. But Benjamin Netanyahu of the centre-right Likud said the "nationalist camp" had won.

But Tzipi Livni, leader of the governing centrist party Kadima, said she was ready to lead the country.

Exit polls give Kadima 30 seats to Likud's 29. Both would need the support of smaller parties to form a coalition.

Ultra-nationalist Yisrael Beitenu is forecast to be third.

The projections would push the Labour party - led by Defence Minister and former Prime Minister Ehud Barak - into an unprecedented fourth place.

livni: "We won the confidence of the people"

Final results will come within days.

Likud had held a solid lead in opinion polls prior to the election, but Kadima closed the gap in the final days.

Cheers erupted at Kadima's headquarters as the exit polls were announced on Israeli TV.

"Today the people chose Kadima," Ms Livni later told crowds of ecstatic supporters.

"The land of Israel does not belong to the right, just as peace does not belong to the left."

Ms Livni appealed to Mr Netanyahu to join a national unity government that she would lead.

Kingmaker

But even if the exit polls are proved right, the strong showing by right-wing rivals will make it difficult for Ms Livni to form a coalition government, analysts say.

Several smaller parties, whose support Ms Livni would need, are opposed to some of her policies, especially her pledge to exchange land for peace with the Palestinians.

Mr Netanyahu claimed victory, saying a Likud-led coalition would lead Israel.

"With God's help I will lead the next government," he told cheering crowds at Likud's Tel Aviv headquarters.

On the basis of the exit polls, analysts predict that Likud and various nationalist parties will between them control 65 of 120 seats in the Knesset.

BBC diplomatic correspondent Jonathan Marcus says the closeness of the forecasted result is in many ways the worst outcome for Israeli democracy, as it sets the scene for days and probably weeks of fractious political horse-trading.

Likud looks to have already sown up a deal with the strongest of the orthodox Jewish religious parties - Shas - ahead of the election, our correspondent adds.

Corruption probe

Once the final results are in, President Shimon Peres will consult with party leaders to determine who among them stands the best chance of forming a coalition government, but he does not have to choose the leader of the largest party.

The chosen party leader has then up to 42 days to form a coalition. If the attempt fails, Mr Peres can ask another leader to assume the task.

Much will depend upon what the Yisrael Beitenu leader Avigdor Lieberman tells the president, and which way he leans may be decisive in determining who is the first to be asked to try to form a coalition government, our correspondent says.

Elections were called early after Ms Livni failed to form a new government following Prime Minister Ehud Olmert's decision to step down last year amid a corruption probe against him.

Mr Olmert will stay on as caretaker prime minister until a new government is formed.

The election has been dominated by security issues following Israel's offensive in the Hamas-ruled Gaza Strip.

Although the Palestinian Authority has not expressed preference for any candidate, its senior negotiator, Saeb Erakat, expressed dismay that right-wing parties had performed so well.

"It is obvious the Israelis have voted to paralyse the peace process," he said.

Israel Announces Unilateral Cease-fire, Ending 22-Day Gaza Offensive

Ehud Olmert

Israel has declared a unilateral cease-fire, ending a 22-day offensive on the Gaza Strip that Palestinian health officials say killed more than 1,200 people - many of them civilians. However, Hamas says the declaration is not enough and is vowing to fight on.

The announcement of a cease-fire came late Saturday from Israeli Prime Minister Ehud Olmert in Tel Aviv. Mr. Olmert said that on Saturday, all the conditions had been created such that Israel's aims, as set earlier, were attained fully, and beyond.

Israel's goals were to destroy Hamas' ability to launch rockets at civilians in southern Israel and to prevent the group from rearming, by sealing off tunnels that Hamas had used to smuggle weapons into Gaza.

The Israeli leader said Hamas militants had been - in his words - badly beaten and Israeli forces have severely damaged their ability to fire rockets at southern Israel. He said Israeli troops would remain in Gaza for now.

Hamas has demanded a quick and complete pullout of Israeli soldiers from Gaza and a reopening of all of Gaza's border crossings. Officials with the militant group late Saturday said Israel's unilateral declaration was not enough for Hamas to give up its fight. At least one rocket fired from Gaza landed in Southern Israel in the minutes after Mr. Olmert's announcement of a cease-fire.

The decision to end the offensive came at a meeting of Israel's security cabinet Saturday. The Israeli Prime Minister apologized to the people of Gaza for the heavy civilian casualties inflicted by Israeli forces, and said Israel would help with humanitarian and recovery efforts. "We regret very much the fact that there were so many who, in spite of the genuine efforts made by the Israeli army, suffered from this confrontation. I want to apologize on behalf of the government of Israel for everyone who was unjustly affected, in Gaza, by this operation," he said.

The apology might not be enough to quiet U.N. calls for a war crimes investigation of Israel, especially after an Israeli tank fired on a U.N. compound, killing two boys who - along with more than a thousand other people - had taken refuge there.U.N. Secretary General Ban Ki-moon earlier Saturday expressed outrage over the incident. "I condemn, in the strongest terms, this outrageous attack which is the third time that this has happened. The top Israeli leaders have apologized and had given me their assurances, just two days ago while I was visiting Israel, that U.N. premises would be fully respected. I strongly demand a thorough investigation into these incidents and the punishment of those who are responsible for these appalling acts," he said.

Egypt, which has been trying to broker an agreement between Israel and Hamas, has called a meeting of European leaders on Sunday to discuss the truce and recovery efforts in Gaza

Biden the clear frontrunner for Veep

ALBUQUERQUE, N.M. - I've recently spoken with two of the finalists for the role of Barack Obama's running-mate, and to two other sources who are close to the process.

My bottom line is this: Barring a big surprise or last-minute change of heart, the choice is likely to be Sen. Joe Biden of Delaware, chairman of the Foreign Relations Committee.

He is a lively and feisty if unpredictable campaigner with working-class roots and a street-level feel for the hot spots of the globe — which he can use to go toe-to-toe with Sen. John McCain.

"If I had to bet my life on it, I'd bet it is Joe," said one of the other contenders.

Said another, "Barack is moving toward a seasoned Beltway type, and that probably means Biden."