Israel completed a limited withdrawal of 15,000 Jewish settlers and supporters from occupied Palestinian land.
Predictions of long, tough resistance to evacuation proved wrong just as they did in Gaza where troops cleared out settlers from all 21 enclaves two weeks ahead of schedule in a move to "disengage" from conflict with Palestinians.
US President Bush, speaking after the last two settlements were evacuated, called for a return to the internationally sponsored peace "road map" that envisages the establishment of a Palestinian state alongside a secure Israel.
US President George W Bush
"But I understand that in order for this process to go forward there must be confidence: confidence that the Palestinian people would have in their own government to perform; the confidence with the Israelis that they'll see a peaceful state emerging," Bush said in Donnelly, Idaho.
Palestinian President Mahmoud Abbas, who has said he hopes to convince his people that dialogue with Israel is the way to statehood after the pullout, telephoned Israeli President Moshe Katsav to congratulate him on the settlement evacuations, a Palestinian official said.
Israel's army chief, Lieutenant-General Dan Halutz, said demolitions of vacant settler homes would be finished in 10 days and a follow-up military pullout from Gaza "will be accomplished during September ... I believe close to the end of September."
However, Sharon has vowed to keep all of Jerusalem and large West Bank settlements where some 230,000 Jews live contrary to international law among 2.4 million Palestinians.