Palestinian Political Factions Agree to Reconciliation Government

Politics, Geopolitics & Conflict

Palestinian factions Hamas and Fatah have signed a declaration for the formation of a joint government in talks mediated by Beijing this week. The two factions have agreed to an interim reconciliation government should a ceasefire deal be reached with Israel in the Gaza Strip. (12 other Palestinian factors also signed the declaration). The declaration is meant to ensure that Israel has a reduced pathway to establishing an alternative structure of power in Gaza. Hamas seized control of Gaza from Fatah in 2006, and a bitter rivalry has ensued ever since, making this Beijing-sponsored declaration an important development. Biden met with Netanyahu on Thursday (with the Israeli PM also scheduled to meet with Harris and Trump), to discuss the existing ‘plan’ for a Gaza ceasefire. That tentative ceasefire deal has a 42-day “first phase”) that would include hostage releases from both sides. Israel is now seeking changes to the plan, which will add further complications. The markets should not hold their breath. With regards to the Houthis, after a Houthi attack on Tel Aviv last weekend, more promises of retaliation for an Israeli attack on Yemen’s port of Hodeida continued this week, with Israel claiming to have intercepted a Houthi missile on Thursday.

Headlining reports of the U.S. and Canada intercepting two Chinese nuclear-capable bombers and two Russian bombers off Alaska have created some cause for concern, though the bombers…