Territories During series of meetings 18-22 Dec in Cairo on Palestinian reconciliation, Hamas leader Meshal and PA President Abbas announced plans for Hamas and Islamic Jihad to join PLO; for formation of unity govt 26-31 Jan; and for Palestinian legislative, presidential, PLO elections in 2012. Israeli PM Netanyahu 25 Dec said Israel will not negotiate with PA if Hamas joins Palestinian govt. Israel 18 Dec completed second and final phase of mid-Oct Gilad Shalit prisoner exchange deal, releasing remaining 550 of 1,027 Palestinian security prisoners. 3 days of extremist Jewish violence 12-14 Dec including attack on army base in West Bank and torching of mosques. EU members of UNSC 22 Dec condemned Israeli settlement building and growing settler violence; Israel accused them of interfering in its domestic affairs. Sporadic violence across Gaza border including 4 Palestinians killed 8-9 Dec after barrage of rockets fired into Israel, chief of al-Qaeda-linked Army of Islam killed 30 Dec.

PA President Abbas and Hamas politburo head Meshal met 24 Nov in Cairo for first time since 4 May reconciliation agreement, reportedly agreed to hold elections 4 May but failed to resolve differences over interim unity govt. In protest at Palestine’s 31 Oct admission to UNESCO Israel froze transfers of tax and customs revenues to PA for 4 weeks; pushing PA to brink of financial collapse according to PA PM Fayyad. Israeli govt 1 Nov announced it would accelerate construction of 2,000 housing units in contested areas of E Jerusalem and 2 West Bank settlements. UNSC Membership Committee 11 Nov report showed no majority on Palestinian full membership. Quartet representatives 14 Nov met separately with Israel and PLO counterparts; no progress. Israeli Defence Minister Barak 20 Nov warned Iran less than 1 year away from producing nuclear weapon (see Iran). Intermittent violence along Gaza border including 2 Palestinians killed 3 Nov by IDF following sniper attack; Israeli airstrike killed Islamic Jihad militant 5 Nov; Palestinian police officer killed 14 Nov in air strike following rocket attack. Rockets fired 28 Nov from southern Lebanon struck N Israel, first since 2009, IDF responded with artillery fire.

Israeli soldier Gilad Shalit, seized by Hamas in 2006, released 18 Oct in exchange for release of 1,207 Palestinians - 450 immediately, rest in 2 months. Flare-up in violence 27-31 Oct: barrage of rockets fired by Islamic Jihad group from Gaza killed 1 Israeli civilian in Ashkelon; dozen Palestinians killed in IDF airstrikes. 25 Egyptians in Israeli custody swapped 27 Oct for U.S.-Israeli citizen arrested in Egypt in June on suspicion of espionage. Quartet official 26 Oct said Israel, Palestinians agreed to offer peace proposals on issues of territory, security within 3 months. UNSG Ban 14 Oct criticised reported Israeli plans to build 2,600 housing units in E Jerusalem as “unacceptable”. Defence Minister Barak 12 Oct formally apologised to Egypt for Sept killing of 6 Egyptian soldiers by IDF. Turkish PM Erdoğan 5 Oct called Israel regional threat for assumed possession of nuclear weapons. Palestine 31 Oct granted full membership to UNESCO; U.S. immediately cut funding to organisation.

PA President Abbas 23 Sept submitted Palestinian application for full UN membership to UNSG Ban; Hamas rejected UN move as “begging” for statehood. Israeli PM Netanyahu said peace can be achieved only through direct talks. Sporadic clashes 23 Sept between Palestinian protesters and Israeli military in E Jerusalem and West Bank. Quartet urged return to peace talks with aim of deal by end-2012; Abbas 26 Sept repeated refusal to talk without Israeli settlement freeze. UNSC president 28 Sept referred Palestine’s application to special committee that deals with admission of new members. EU, U.S. 28 Sept condemned Israeli plans for construction of 1,100 new housing units in occupied E Jerusalem as counterproductive to negotiations on peace talks. UN report into May 2010 deadly raid on Gaza-bound protest flotilla published 2 Sept, found Israel used excessive force but blockade of Gaza legal (see Turkey). Rioters 9 Sept ransacked Israeli embassy in Egypt, forced evacuation of staff (see Egypt).

Militants 18 Aug killed 8 Israelis including 6 civilians in S Israel close to Egyptian border; 5 Egyptian police killed in IDF operation responding to attack, as Israeli officials claimed gunmen infiltrated from Gaza Strip via Egypt; 3 attackers identified as Egyptian. Cairo threatened to recall envoy to Tel Aviv; IDF expressed regret. IDF 18 Aug began series of airstrikes on Gaza in retaliation: at least 19 Palestinians killed including Popular Resistance Committees, Islamic Jihad leaders. Strikes and rocket launchings continued despite 23 Aug ceasefire agreement between Hamas, Israel. Israel 17 Aug refused to endorse U.S.-supported “package of understanding” with Turkey for May 2010 deadly raid on Gaza-bound protest flotilla, opting instead for continuation of UN inquiry. Govt approved more than 2,700 new settler homes in East Jerusalem, West Bank. Knesset 16 Aug broke recess to debate 4-week protest by tens of thousands over living costs; PM Netanyahu formed panel to recommend possible reforms. PA President Abbas 16 Aug confirmed plans to apply for full UN membership at UNSC in Sept. Leaders from Fatah, Hamas same day held reconciliation talks in Cairo, agreed to meet again early Sept.

Undeclared Gaza-Israel ceasefire since 18 April ended with sharp escalation in projectiles fired from Gaza late June-July, increased Israeli attacks on smuggling tunnels, Qassam Brigades targets. UN 6 July report on 15 May deadly Nakba day protests along Lebanese border criticised IDF excessive force and protesters’ provocative, violent behaviour. Vice PM Ya’alon 21 July said Turkish insistence on Israeli apology for last year’s commando raid on Gaza-bound flotilla makes reconciliation impossible (see Turkey); planned “Freedom Flotilla 2” failed to arrive in Gaza as several boats damaged, all but one prevented from sailing from Greece. PA President Abbas 27 July called for peaceful “popular resistance” throughout West Bank in support of bid for UN recognition of Palestinian state. PA 27 July reportedly decided Oct Palestinian municipal elections will be held only in West Bank; election commission reports Hamas hampering preparations in Gaza. PApaid West Bank state employees only half monthly salaries July, PM Fayyad said PA facing “worst financial crisis”. 2 weeks of protests in Israel over high living costs peaked 30 July with up to 150,000 demonstrating in 12 cities.

At least 10 killed 5 June in clashes between IDF and Palestinian-Syrian protesters along border with Israeli-held Golan Heights; Israel, U.S. accused Syrian govt of using protests as provocation to draw attention from its violent crackdown on anti-regime demonstrators. Israeli parliament 16 June sent letter to Turkish PM Erdoğan congratulating him on election victory, offered to “bury grudges of recent past”. Turkish Humanitarian Relief Foundation (IHH) 17 June announced Mavi Mamara – vessel upon which 9 Turks killed last year by Israeli forces – will not join Gaza flotilla expected to sail early July; Netanyahu 26 June warned Israel will not allow ships to breach naval blockade. Talks on formation of Palestinian unity govt postponed 19 June; talks reportedly stalled over issue of head of new transitional govt. PA 26 June formally voted to seek UN recognition of Palestinian state in Sept; Israeli FM Lieberman 17 June warned past agreements with Israel void if Palestinians press ahead with unilateral recognition plans. UN report 8 June said West Bank economy not flourishing, cited accelerating unemployment, lower real wages, deteriorating labour market conditions.

Some 15 killed, over 400 wounded 15 May by IDF gunfire as tens of thousands of pro-Palestinian protesters marked Nakba along Israeli borders with Gaza, Syria and Lebanon (See Syria and Lebanon). Fatah, Hamas 4 May signed Egypt-mediated reconciliation deal; agreed to form unity govt, hold presidential, legislative elections within 1 year. Israeli PM Netanyahu called unity pact “tremendous blow to peace”. PA President Abbas 17 May postponed municipal elections 3 months until Oct so vote can be held in both West Bank and Gaza. U.S. President Obama 19 May in major Middle East speech proposed Palestinian state based on pre-1967 borders with mutually agreed land-swaps as peace talks guideline; Netanyahu immediately rejected withdrawal to “indefensible” borders. Abbas 25 May said without progress will seek UN recognition of Palestinian statehood in Sept; Arab League 28 May backed UN move. Egypt 28 May opened Rafah crossing permanently for certain groups for first time in 4 years.

Fatah, Hamas 27 Apr reached tentative reconciliation agreement; under Egypt-brokered deal interim unity govt to be formed, with presidential, legislative elections within 1 year. Israel rejected any govt including Hamas, said PA could not have peace with both Israel and Hamas. Flare-up in cross-border violence 7-10 Apr after Israeli school bus hit by rocket from Gaza; 1 teenager later died from wounds. 140 rockets fired by Gazan militants, 19 Palestinians killed in Israeli retaliation before UN- and Egypt-mediated informal ceasefire agreed 10 Apr. Italian activist killed 14 Apr in Gaza after being kidnapped by Salafi-Jihadist group demanding release of a Salafi leader; 2 suspects killed, 1 injured in 19 Apr raid by Hamas security forces. Ahead of 12 Apr donor’s conference UN, IMF and World Bank said PA is ready to run independent state. 2 Palestinian youths arrested early Apr for 11 March murder of Israeli settler family near Nablus.

Surge in cross-border violence between Israel and Gaza. Israel killed 2 Hamas fighters 16 March in response to earlier attack by unidentified group; Hamas and others responded 19 March with barrage from Gaza, heaviest since 2009. Israeli response killed at least 11 in following days. Militant groups 26 March signalled readiness to stop rocket fire if Israel halted strikes: Israeli PM Netanyahu 27 March said Israel has no desire to escalate situation; exchange of fire continued. Bomb blast 23 March killed 1, wounded dozens in Jerusalem; first in city since 2008. Jewish family of 5 murdered 11 March in Itamar settlement near Nablus; Israeli govt reacted by authorising construction of 550 residential units in settlement. Israel 15 March intercepted ship reportedly carrying surface-to-sea missiles from Iran to be smuggled into Gaza from Egypt; Iran denied report. Hamas cracked down on pro-unity protests during month; in West Bank 15 March demonstrations attracted only a few thousand. Netanyahu 28 March criticised Palestinian efforts for national unity, said “can not have peace with both Israel and Hamas”.