Jack Straw has welcomed the ceasefire declaration at the Middle East summit in Egypt.

Mahmoud Abbas, president of the Palestinian Authority, said Palestinians had agreed to end all violence against Israelis.

In return, Ariel Sharon, the Israeli prime minister, said his county would for the first time"cease all its military activity against all Palestinians anywhere."

There is a "new determination" to bring about a two-state solution, the foreign secretary said.

"There is a general sense of guarded optimism," he added.