JUDY WOODRUFF, CNN ANCHOR: Former Israeli Prime Minister Benjamin Netanyahu says that he is no longer a candidate for that post. As CNN's Matthew Chance reports, the popular politician has made clear that would only re-enter the race if he were certain conditions were met.</s>MATTHEW CHANCE, CNN CORRESPONDENT (voice-over): Late into the night, the Israeli parliament debated its course, passing a law giving Benjamin Netanyahu the opportunity to run for the prime ministership. But the man opinion polls say is at the moment the most popular figure in Israeli politics is bowing out. Only a prime minister with a majority in parliament, he says, would be a strong enough leader, and he says he wants a general election before he'll run. But parliament has rejected that, and the people of Israel are facing a leadership contest in February without the candidate many feel could have won. It now looks likely Ehud Barak will face Likud Party leader Aerial Sharon in the election. There is speculation veteran former Prime Minister Shimon Peres will also run. With more confrontation between Israelis and Palestinians, the tension is now shifting to Washington, where Israeli and Palestinian negotiators are gathering for talks with U.S. officials may lead to a peace submit. With a Palestinian general strike in force to protest against the meetings, many Israelis are looking hard at what more negotiations will bring as elections approach.</s>UNIDENTIFIED MALE: Basically, he has to wait and see, and he cannot do anything before the election.</s>UNIDENTIFIED MALE: He is trying to have the peace. It's better than war. Because this time this war is not the same war. This will be worse.</s>CHANCE (on camera): Prime Minister Ehud Barak may have been bolstered by political developments at home. But his reelection chances may still depend on forging a deal with the Palestinians and convincing a skeptical Israeli public that he is the man who can bring peace. Matthew Chance, CNN, Jerusalem.
Crisis in the Middle East: Netanyahu Drops Out of Race for Israeli PM; Peres Considering Run