May 5, 2011: The new (and somewhat sudden) peace deal between Hamas and Fatah was something of a shotgun (forced) marriage. The uprising in Syria has threatened the sanctuary of the Hamas leadership (which has few, or no, other basing options). Hamas is considered an international terrorist group, and a peace deal with Fatah might get Hamas off the list and its Syria based leaders eligible for sanctuary in the West. The overthrow of the government in Egypt provides a temporary opportunity to get the Gaza access to Egypt restored (until the anti-Egypt terrorists based in Gaza kill some more Egyptians, which they certainly will). Fatah and Hamas were locked in a stalemate over who would lead all Palestinians and were desperate for a way out. So they undertook this agreement, which does not settle the struggle over which faction is in control. Hamas does not give up its goals of destroying Israel. Fatah actually shares those goals (as can be seen from the daily propaganda broadcast by Fatah's Arab language media), but has successfully pretended (to the West) that it does not. Fatah and Hamas are still intact as separate organizations, and still at war with each other. The peace deal is a ploy to gain more support (and money) from the West for the Palestinian effort to destroy Israel. Both Fatah and Hamas see a peace deal with Israel as a tactical move in their battle with Israel. The unification agreement allows Fatah to continue negotiating a two country deal with Israel (the creation of a Palestinian state), but Hamas will be able to continue refusing to recognize the existence of the state of Israel.
May 4, 2011: In Gaza, Hamas executed a Palestinian for being an Israeli spy. This is the first such execution this year. There were two of them last year. Over a dozen Palestinians are sentenced to prison for spying each year, apparently avoiding execution by collaborating with the investigation. Israel has always had a large network of informants in Gaza, who provide data on military, economic and political events, as well as targeting information for Israeli air attacks.
In Gaza, Hamas does not interfere as several dozen people protest the killing of Osama bin Laden. Islamic clerics in the West Bank condemned the killing of bin Laden.
In the West Bank, Israeli troops conducted night raids to arrest seven wanted (for terrorism) Palestinians.
In Egypt, Hamas and Fatah signed a peace agreement.
May 1, 2011: Israel halted all money (mostly taxes and customs fees) transfers to the Palestinian Authority, after the announcement of the Fatah-Hamas peace deal. Israel wants guarantees that none of this money will reach Hamas (which openly calls for, and supports, the destruction of Israel.)
April 30, 2011: Opinion surveys in Israel show 48 percent of Israelis would support a separate Palestinian state if the major Israeli settlements in the West Bank were left alone. Egypt announced that it would eliminate border controls with Gaza if the Palestinian unity deal was signed. Israel opposes this because it would enable easier movement of new weapons into Gaza.
April 28, 2011: On the Gaza border, an Israeli tank fired several shells at four Palestinians who were trying to plant explosives near the border road. The four men fled, but some nearby civilians were wounded. In the West Bank, two Palestinians were arrested as they tried to plant explosives near an Israeli Army guard tower.
April 26, 2011: For the third time since the overthrow of the Egyptian dictatorship in February, a terror group blew up a section of the gas pipeline to Israel. Many Egyptians want to cut off all trade with Israel and cancel the peace treaty. That is unlikely to happen, as political leaders of the new government recognize that such policies would be economic and diplomatic suicide. But decades of government propaganda against Israel have had their effect. Most Egyptians see Israel as the enemy.