Palestinian shock: President says he wants to quit

He ran for president from his cell in 2004 but withdrew under pressure from Fatah leaders. This time, associates say, he is determined to stay in the contest.

Barghouti's incarceration could work both for and against him. It might be difficult for him to campaign from a jail cell, but his nomination could force his release. Also, imprisonment has shielded him from blame for the absence of a peace accord with Israel, a shattered West Bank economy and Hamas in power in Gaza.

Yossi Sarid, an Israeli former lawmaker identified with the peace movement, said Israel and the U.S. humiliated Abbas, leading to his decision. "This means that we are probably entering a terrible period where the extremists will run the show," Sarid said.

In case Abbas steps down, Fatah insiders are promoting Nasser Al-Kidwa, 50, as a candidate. He has served as the Palestinian representative at the U.N., is not linked with the corruption that bedevils the party, and has the additional benefit of being Arafat's nephew.

Another potential candidate is Mohammed Dahlan, 48, a one-time Fatah strongman in Gaza. He was recently elected to the top Fatah policy-making body, but he is blamed by many for losing Gaza to Hamas, and is tainted by allegations of corruption.

Hamas spokesman Taher Nunu said he didn't believe Abbas really meant to step down. "His speech wasn't for the Palestinians alone," he said. "It was for the United States and the international community, so they will give him more support in the elections."

After Abbas' speech, Clinton praised his leadership in working toward the creation of a Palestinian state next to Israel.

Speaking to reporters in Washington, she ignored a question about whether she would urge Abbas to stay on and saying only that she would go on working with him to advance peace.

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