Mahmoud Abbas, Palestinian president, said on Thursday that talks with the ruling Hamas movement on a national unity government had broken down. His announcement came as Condoleezza Rice, US secretary of state visited the region in a bid to expand the limited ceasefire agreed ast the weekend into wider peace moves.

It was unclear if Mr Abbas’ statement was a tactic to break a deadlock with Hamas but aides said he was considering dramatic moves, which could include an emergency government and eventual fresh elections.