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US President Bush declares that Arafat is the main obstacle to achieving peace in the Middle East.

March: In a month that proved to be the bloodiest of the intifada in which more than 100 Israelis are murdered, the Israel Defence Forces launch Operation Defensive Shield in which they re-occupy most of the territory and cities ceded to the Palestinians. Yasser Arafat is held under virtual house arrest in his Muqata compound in Ramallah where the IDF subsequently discover concrete proof that he has been directly financing and coordinating terrorist attacks against Israel. US President Bush declares that Arafat is the main obstacle to achieving peace in the Middle East.

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