Hamas decided to dissolve the Gaza administrative committee and hold talks with Fatah.
How did the conflict evolve?
Fatah is the largest faction of the multi-party Palestine Liberation Organization (PLO) closely identified with the leadership of its founder Yasser Arafat.
Hamas is a Palestinian Sunni-Islamic fundamentalist organization.
In the 2006 parliamentary election, Fatah lost its majority in the Palestinian parliament to Hamas.
This led to a conflict between Fatah and Hamas, with Fatah retaining control of the Palestinian National Authority in the West Bank, while Hamas dominated Gaza.
Both organizations are Sunni Muslim.
Both are pledged to restore to Islamic rule the whole of Mandate Palestine.
Their fundamental disagreement is over the strategy for achieving this common purpose, i.e Fatah believes more in peaceful process, whereas Hamas wants to resort to violence.
Earlier Hamas opposed the PLO entering peace talks with Israel, utterly rejected the first Oslo Accord agreement of 1993 and was appalled by the PLO ’s recognition of the State of Israel.
What is the recent development?
Israel has been steadily tightened its occupation of the West Bank.
But the Palestinian leadership has been unable to resist or launch a peace bid because of the divisions within.
However, in recent months Hamas has shown interest in a rapprochement as the humanitarian crisis in the Gaza Strip, blockaded by Israel and Egypt, worsens.
In May it adopted a new political charter, softening its stand on Israel and accepting, for the first time, the idea of a Palestinian state based on the 1967 border.
It said that it would allow the reconciliation government based in Ramallah to run Gaza and hold elections in the territories.
Fatah has welcomed the statement.
What lies ahead?
Hamas is seen as a terrorist organisation by several international actors, including the US, Israel and the European Union.
But Hamas’s moderation is real and gradual.
It first set aside a charter, which Israel and its allies saw as an impediment to peace, and it is now proposing intra-Palestinian reconciliation.
If Fatah and Hamas form a national government and ease the many restrictions currently in place on Gaza, it would be a huge relief for the territory’s 1.8 million people.
A united bloc would also enhance the bargaining power of the Palestinians vis-a-vis Israel.
The international community should respond positively by putting pressure on Israel for a new round of the peace process.