Economy / Israel
Israel
May 2008 | Risk SummaryWe are not overly hopeful that the ceasefire agreed by 12 Palestinian militant groups in late April will end the violence in Gaza. Although the deal was proposed by Hamas, the group which controls the Gaza Strip, it was not present at the talks in Cairo. Israel remains suspicious that Hamas would use the respite of a ceasefire to regroup, following a series of damaging attacks to its infrastructure over recent weeks. Against this backdrop, Israel is likely to maintain its iron grip on the territory, meaning ongoing fuel, power and food shortages, and increasing resentment from the Palestinian side.
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