Dogged by corruption scandals, Israeli Prime Minister Ehud Olmert announced today he would resign after his ruling Kadima party chooses a new leader in a September 17 internal election.
Olmert's decision to step down throws Israeli politics into fresh turmoil and may cast into limbo peace talks that he launched with the Palestinians and Syria.
"I have decided I won't run in the Kadima movement primaries, nor do I intend to intervene in the elections," Olmert said in a surprise announcement from his official residence in Jerusalem.
"When a new (Kadima party) chairman is chosen, I will resign as prime minister to permit them to put together a new government swiftly and effectively," Olmert added.
Four Kadima ministers, including Foreign Minister Tzipi Livni and Transport Minister Shaul Mofaz, have already launched campaigns to replace Olmert as prime minister.
A spokesman for Palestinian President Mahmoud Abbas said Mr Olmert's decision to resign as an "internal Israeli matter" and will work with his successor.
"This is an internal Israeli matter. The Palestinian Authority deals with the prime minister of Israel, regardless if he is Olmert or somebody else," said Abbas spokesman Nabil Abu Rdainah.
"The concern of the Palestinian authority is to have an Israeli prime minister who is committed to peacemaking."
Commenting on Mr Olmert's decision to stand down this evening, the White House said it 'would keep working toward President George W. Bush's goal of securing an Israeli-Palestinian peace deal before he leaves office.'
"We will continue to work on a deal before the end of the year," White House spokesman Gordon Johndroe said when asked how Olmert's departure would affect the fragile peace process.
Political analysts say the process of replacing Olmert could drag on for months and could lead to early national elections. Polls suggest that right-wing Likud leader Benjamin Netanyahu would win such a contest.
Olmert's successor as Kadima party leader would not automatically take over as prime minister.
He or she must first cobble together a coalition government, a challenge that could prove time-consuming and complicated because of bitter divisions within parliament.
The two most prominent investigations against Olmert involve suspicions that he took bribes from an American businessman, and that he double-claimed for travel expenses when he was trade minister and mayor of Jerusalem.
Reuters