The sides have been racing against the clock to hammer out at least a skeleton agreement to bolster Barak's sagging popularity ahead of the election. New opinion polls point to a landslide victory for Sharon. Sharon's opposition Likud party has said it will not be bound by any deal Barak reaches in the run-up to the election. A senior Palestinian negotiator told Reuters the talks had already yielded some progress, specifically regarding borders and refugees. He said the negotiators had not yet discussed the issue of Jerusalem, despite Barak's proposal.
Violence is a constant threat to talks.
A gun battle flared on Tuesday near the Gaza- Egypt border between Israeli soldiers and Palestinians. Palestinians said two people were wounded. The Israeli army said on Tuesday an Israeli convoy had came under fire near the Gaza Jewish settlement of Netzarim. Soldiers fired back, and apparently one gunman was wounded, it said.