Economy / Israel
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Israel
June 2008 | Risk SummarySorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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As we suggested, the Israeli government appears to be inching closer to a military attack on Gaza. Speaking on an official visit to the US, Prime Minister Ehud Olmert said that Egyptian efforts to mediate were 'not ripening in a way that can bring a cease-fire'. Although it would increase Israeli security if it could eliminate Hamas from the Palestinian political equation, we think it could backfire. Not only could Hamas fight back more effectively than Israel currently anticipates (as Hizbullah did in Lebanon in 2006), but popular resentment will likely intensify among Palestinians, who elected Hamas in 2006.