Surprise Palestinian unity deal challenges Israel

JERUSALEM, (Reuters) – Israel said yesterday a  Palestinian unity deal would sabotage prospects for peace and  stemmed from panic by Hamas and Western-backed President Mahmoud  Abbas over popular uprisings in Syria and Egypt.

The surprise reconciliation between the Islamist group that  runs Gaza and Abbas’s Fatah movement that exercises limited  self-rule in the West Bank presented a new challenge for Israel  as it mounts a diplomatic drive against a Palestinian campaign  to win U.N. recognition of statehood ambitions in September.

“The agreement between Fatah and the terror organisation  Hamas is a fatal mistake that will prevent the establishment of  a Palestinian state and will sabotage chances of peace and  stability in the region,” Israeli President Shimon Peres said.

Peres, a respected elder statesman, said in a statement he  feared Hamas would ultimately take over the West Bank after a  Palestinian election envisaged by the unity deal and that the  influence of Hamas ally Iran would be strengthened as a result.