The Palestinian Prime Minister Salam Fayyad has resigned after six years in the job, following a long dispute with President Mahmoud Abbas.
It is being seen as a blow to peace efforts with Israel just as the US is trying to revive negotiations. President Obama praised him during his visit to the region last month.
An independent, he belongs to neither President Abbas’ Fatah party, nor to Hamas. Instead he has been vulnerable to attack from both camps, and his economic policies at a time of hardship have been unpopular.
Although he failed to build a strong political base at home, Fayyad is admired abroad including in Israel.
He had reportedly offered to resign before; this time it has been accepted.
Under Palestinian law the president has two weeks to choose a new prime minister.