Peel's Premier League aspirations suffered a major setback on Wednesday as they went down 4-1 to old firm rivals Rushen at Douglas Road.
Steve Riding and a Furo Davies hat-trick did the damage for Rushen, with Daniel Bell on target for Peel.
The result gives hope to the chasing pack with Old Boys, St Mary's and St Georges all still in contention.
Meanwhile, third-placed St Mary's missed the chance to close the gap as they were held 4-4 at home by Gymns.
Elsewhere, Laxey and Michael United played out a 2-2 draw at Glen Road.
In CFS Division Two, St. John's continued their march towards the title with an emphatic 8-1 win over Police.
The result made it 22 wins in 23 outings this season.
Results, 15 April
Sure Mobile Premier League
Laxey 2-2 Michael United
Peel 1-4 Rushen United
St Mary's 4-4 Gymnasium
CFS Division Two
Castletown 7-0 Douglas & District
Police 1-8 St. John's
Pulrose 3-3 Braddan
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