The relatively small party, which is seen as more extreme than Hamas, is said to have increased its popularity following what is perceived as a Hizbullah victory over Israel.
On Tuesday, thousands of the party's supporters staged a demonstration in Gaza City to mark the anniversary of the end of the collapse of the Ottoman Empire. It was the first demonstration in the Gaza Strip in which demonstrators called for establishing an Islamic caliphate that would rule not only in the PA territories, but the entire world.
Buoyed by the large turnout, the party's leaders are now considering declaring an Islamic caliphate in the Gaza Strip during Friday prayers, sources close to the party said.
5:32 PM Speechless. Channel 10 just announced the results of a poll they conducted: If there would be elections today for Prime Minister, who would you vote for? Check out the following results:
Amir Peretz 1%
Shimon Peres 2.6%
Ehud Olmert 3.4%
Benjamin Netanyahu 46.5%
Avigdor Leiberman 46.5%
An Australian man has been sentenced to 20 years in jail for plotting bombing attacks in Sydney.
Faheem Khalid Lodhi, a Pakistan-born architect, was convicted in June of planning various attacks on the city's power grid and military installations.
He was found guilty of three charges relating to terrorism, and faced a maximum sentence of life in jail.
Lodhi, who denies all charges against him, was prosecuted under Australia's strict new anti-terrorism laws.
Beijing said it hoped all parties would show calm, patience and flexibility so that negotiations could be resumed, and said it was "carefully studying" Iran's reply.
"China has always believed that seeking a peaceful resolution of the Iranian nuclear issue through diplomatic talks is the best choice and in the interests of all parties concerned," the ministry said.
Russia echoed the Chinese stance, stressing its commitment to a negotiated solution to the crisis over Iran's nuclear programme.
Russia will continue "seeking a political, negotiated settlement concerning Iran's nuclear programme," Interfax news agency quotes a Russian foreign ministry spokesman as saying.
The US gave no immediate reaction to Iran's response. "We're giving it careful consideration and a careful review, as it deserves," White House spokeswoman Dana Perino said.
But in Paris, French Foreign Minister Philippe Douste-Blazy said fresh talks were dependent on Tehran first suspending its nuclear activities.
"As we have said all along, and as Mr Larijani well knows, the return to the negotiating table is tied to a suspension of its uranium enrichment activity," he said.
"The Iranians know the rules of the game: first a suspension of sensitive nuclear activities."