Hamas, the Islamic radical party now ruling the Palestinians, announced that they don't really care about financial aid from Europe or the U.S. This is because Hamas believes that soon the world will be largely Islamic, and the Christian nations will amount to little, or nothing, in the grand scheme of things. Hamas believes they are on a mission from God, and that their success is preordained. This creates some difficulties when trying to negotiate with Hamas.
Meanwhile, Hamas backed rioters attacked European aid and media organizations in Gaza, to protest the "anti-Moslem" cartoons published in Denmark. Palestinian media have long published much worse anti-Christian and anti-Jewish illustrations. Hamas considers these violent demonstrations as good morale building exercises.
Hamas has not formed a government yet, and is apparently unsure of its ability to do so. Hamas will be dealing with a chaotic situation when it takes over the Palestinian Authority, because the Fatah party, which has been running things for decades, has made a real mess of things.
Russia has declared that Hamas is not a terrorist organization, and has invited Hamas leaders to Russia to discuss how to not be a terrorist organization. The Russians have a plan, apparently.
February 9, 2006: In Gaza, Palestinian gunmen kidnapped an Egyptian diplomat. Elsewhere in Gaza, Israeli troops killed two Palestinians trying to plant a bomb.
The Israeli government plans to consolidate some of the West Bank settlements and proceed with the building of the security wall that will separate Israelis from Palestinians. This is seen as the future; separation to prevent terrorism. Most Israelis have given up on any cooperation with Palestinians, who are considered untrustworthy and bloodthirsty.
February 8, 2006: Hamas will only accept a state of Israel if Palestinian refugees from 1947, and their millions of descendents, are allowed to return to their homes in Israel. This would destroy Israel, and Israel will not accept it. Basically, Hamas wants Israel destroyed, and will do whatever it can to make this happen. This includes deceit, terrorism and, well, anything goes.
February 5, 2006: In Gaza, two Israeli missiles hit a car carrying Islamic Jihad bomb makers. Two terrorists were killed.
February 4, 2006: Israeli warplanes hit a rocket making facility in Gaza, belonging to Al Aqsa Martyrs' Brigades members, and killed three of them with missiles. This was an attempt to stop Palestinian rocket attacks on southern Israel.
February 3, 2006: Palestinian missiles fired from Gaza hit a house in southern Israel, wounding three Israelis. Islamic Jihad took responsibility. Israeli artillery quickly responded against suspected firing sites and rocket workshops.