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A new, Islamist mini-state was emerging in the Gaza Strip yesterday, as victorious Hamas forces surrounded and blew up their secular rivals’ last strongholds in bitter fighting that threw the entire future of the Middle East peace process into doubt.

Supporters of the Fatah movement fled to Egypt or surrendered as Hamas leaders predicted that they would control the entire coastal strip by the end of the week.

European Union chiefs said that the deployment of an international force should be urgently considered to curb the bloodshed.

In Gaza, Hamas strengthened its grip as its fighters surrounded die-hard Fatah supporters in isolated, last-stand strongholds. In Khan Younis in the south, Hamas guerrillas tunnelled under a Fatah security base and blew it up with its defenders still inside. Those refusing to give up in other besieged bastions were given two days to surrender.