Egyptian prosecutors were interrogating on Tuesday an Israeli man in the Red Sea port of Nuweiba who is suspected of espionage, a judicial source said.

"An Israel man was arrested on Monday in Taba on suspicion of espionage. He was remanded today in police custody for four days pending investigation," the source said.

Nearly 300 Palestinians staged a demonstration in the northern West Bank town of Nablus Monday, protesting against the economic situation and against Palestinian prime minister Salam Fayyad.

An Agence France Presse correspondent said the protest came after Fayyad on Sunday announced that the Palestinian Authority would as of 2013 enforce the payment of electricity bills by refugee camp residents, who have so far not had to pay them.

President Shimon Peres on Sunday urged Israel to resume peace talks with the Palestinians, saying their president Mahmoud Abbas was a willing partner with whom an agreement could be reached.

Speaking with Israeli diplomats at his Jerusalem residence, Peres said the only way the Jewish state could positively affect the fluctuating reality in the region was "to complete the peace agreement with the Palestinians."

Israel's Supreme Court on Sunday overturned a decision by the Central Elections Committee banning Arab-Israeli politician Haneen Zuabi from standing in next month's snap general election.

"Following a hearing on 27/12/2012, it was decided unanimously to reject the Central Elections Committee's decision... to prevent representative Haneen Zuabi from standing for elections for the 19th Knesset," a summary of the court's decision said.

The head of Israel's ultra-nationalist Yisrael Beitenu party, ex-foreign minister Avigdor Lieberman, lashed out Friday against Palestinian president Mahmoud Abbas, saying new peace talks would be possible only if he leaves office.

"Only after his disappearance from the leadership of the Palestinian Authority will it be possible to renew the diplomatic process," Haaretz daily's website quoted him as saying in a statement.

Israeli troops Friday arrested a Palestinian policeman as he tried to pass through an Israeli military checkpoint in the occupied West Bank, a Palestinian security source told AFP.

He said that soldiers detained Firas Abu Aziz, 27, as he was on his way home to the village of Yata, near the southern city of Hebron. The Israeli army could not confirm or deny the report.

Palestinian President Mahmoud Abbas warned Thursday that he would disband his Palestinian Authority if there was no Israeli movement toward renewing peace talks after Israel's elections on January 22.

Abbas, in an interview with the Israeli daily Haaretz, said that if such a situation arose he would hand full responsibility for the occupied West Bank to the Israeli government.

Israeli prosecutors have decided to toughen charges leveled against ex-foreign minister Avigdor Lieberman of fraud and breach of trust, the justice ministry said on Thursday.

Attorney General Yehuda Weinstein announced on December 13 that he would be charging Lieberman with the two offenses over the promotion of Israel's former ambassador to Belarus, Zeev Ben Arie, and presented the indictment to parliament before filing it to the court.

Israeli Prime Minister Benjamin Netanyahu held talks with Jordan's King Abdullah II in Amman recently to discuss violence in Syria and the country's chemical weapons stock, Israeli media said Thursday.

Public radio, as well as several local newspapers, said Israeli and Jordanian officials had confirmed the meeting, which was first reported in the al-Quds al-Arabi daily on Wednesday.

Israel is to begin allowing materials for private construction into Gaza, easing its blockade under the terms of a truce deal, Israeli and Palestinian officials said on Wednesday.

The decision will allow private companies and individuals to import construction materials that were previously restricted exclusively to international aid groups under the terms of Israel's blockade.