Economy of Israel & Finance

Palestinians and Israelis held their first indirect talks in more than a year in a tentative boost to the Middle East peace process, frozen since the Jewish state's devastating war on Gaza.

US State Department spokesman Philip Crowley confirmed to reporters in Washington that the talks had started Monday under the mediation of US Middle East envoy George Mitchell.

"As to how substantive the discussions were today, George is on his way back (to Washington). He will report to the secretary," Crowley said, referring to Secretary of State Hillary Clinton.