Embattled Palestinian Prime Minister Fayyad quits


RAMALLAH, West Bank (Reuters) - Palestinian Prime Minister Salam Fayyad quit on Saturday after months of tension with President Mahmoud Abbas, leaving the administration in disarray just as the United States tries to revive peace talks with Israel.

Abbas, who has been unhappy with Fayyad's handling of the cash-strapped government, accepted the resignation and asked Fayyad to stay on as caretaker until a new government is formed, according to official Palestinian news agency WAFA.

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