Opposition politicians, soldiers and media pundits all called for Ehud Olmert's head after the sudden resignation yesterday of Israel's army chief, Major General Dan Halutz.

The resignation came amid a myriad internal inquiries into the failures of last summer's 34-day war, which cost 157 Israeli lives, as well as the reputation of the nation's army.

Despite the welter of criticism, the country's top soldier had stood shoulder to shoulder with Olmert and his inexperienced and widely criticized defense minister Amir Peretz, in what some commentators had described as a "trinity of bunglers".

But with Maj-Gen Halutz's resignation, weeks before an inquiry into the handling of the war is published, attention has turned to his political allies and masters, whose enemies in the Israeli parliament are now scenting blood.

"The decision of the chief of staff officially establishes the failure of the war in Lebanon," said Right-wing opposition politician Yisrael Katz. "This obligates the prime minister and the defense minister to stop hanging on by the skin of their teeth and resign from their positions."

Olmert refused to respond to the growing crisis yesterday. But his position has undoubtedly been imperiled by what many in Israel view as the catastrophic mishandling of the country's most important portfolio: national security.

His approval ratings have fallen to a mere 14 per cent, while polls suggest his centrist Kadima party – founded by Israel's stricken military leader Ariel Sharon to unite the country just 18 months ago – would hold just a third of its seats in any election.

Only his defense minister, the former trade unionist Amir Peretz, appears more exposed than Prime Minister Olmert. Polls show public confidence in him has evaporated almost completely. Even his coalition partner, the Right-wing leader Avigdor Lieberman, is now openly contemptuous.

Both Olmert and Peretz vowed to replace Maj-Gen Halutz, "within days", but the obvious leading candidate, Maj-Gen Halutz's deputy Moshe Kaplinsky, is as vulnerable to accusations of incompetence during the Lebanon war as his former boss.

Instead the spotlight has fallen on Gabi Ashkenazi, who lost out to Halutz for the top army job in 2005, left active service and is therefore not tainted by the poor running of the war last year.

Olmert may decide he has more to gain by sacrificing his unpopular defense minister, and so bolster his own flagging credentials as a tough leader.

Hezbollah reaction to Halutz resignation

Fireworks ( L) exploded over the tent camp erected by Hezbollah and their allies in downtown Beirut, Wednesday, Jan. 17, 2007, marking the resignation of the Israeli army commander Lt. Gen. Dan Halutz

Top picture: Israeli Prime Minister Ehud Olmert reacts as he sits in the Knesset, Israel's Parliament, during a session in Jerusalem, Wednesday, Jan. 17, 2007
Sources: Telegraph, Ya Libnan