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In a subsequent 1967 war, Israel captured the rest of what had been Mandatory Palestine — Gaza plus the West Bank — and put Palestinian residents of the territories under military occupation. The Palestine Liberation Organization came to prominence after that war, launching guerilla attacks on Israel and earning international recognition as the representative of the Palestinian people.
In subsequent years, trust between Israelis and Palestinians eroded. Hamas launched attacks and suicide bombings in Israel, and Israelis continued to expand Jewish settlements in the territories. Israeli and PLO negotiators repeatedly failed to reach a promised permanent agreement that would have presumably established a Palestinian state. A second intifada, from 2000 to 2005, was bloodier than the first.
Three weeks after the Hamas attack, after a major push into Gaza by Israeli ground forces, Prime Minister Benjamin Netanyahu announced a “second stage” of the war, which he said would be “long and difficult.”As the fighting escalates, Gaza is poised to suffer considerably more devastation. Even before the most recent conflict, the economy and welfare were in decline, with conditions worsened by the blockade of the last decade and a half.
Source: Financial Digest (financialdigest.net)
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