Hamas refused Yassir Arafat's call to again accept the truce. Hamas is more popular among Palestinians than Arafat, mainly because of its relative lack of corruption. The terror operations of  Hamas are also popular with Palestinians, but the public works and honest officials are more significant to most Palestinians. 

Israel continues its raids and arrests in Palestinian areas. These activities allow the army and police to recruit new informers, and meet with existing ones. The informer network in Palestinian areas provides the information for raids on Palestinian weapons factories and storage areas, as well as providing information needed for attacks on terrorist group leaders. These attacks have been increasingly effective, and the terrorist groups are increasing their security to avoid getting hit. This makes a difference, forcing the terrorist leadership to spend more time and effort on their own security and less time running their organizations.