Mideast peace deal still blocked

Jerusalem - Israel said yesterday that talks with Palestinians on peace were still blocked on several issues

Jerusalem - Israel said yesterday that talks with Palestinians on peace were still blocked on several issues. Israel backed away from earlier hints of an imminent peacemaking breakthrough with the Palestinians as Egypt sent a top adviser to try to mediate an agreement on West Bank land handovers.

A statement issued by Israeli Prime Minister Ehud Barak's office said both sides were still divided on several issues, including the release of Palestinians prisoners from Israeli jails.

Meanwhile, a member of the Hizbullah guerrilla movement was killed and three wounded in an Israeli air attack on southern Lebanon Sunday, an Israeli military spokesman said.