Israel says it will loan Palestinians money after highest-level talks in years

By Jeffrey Heller

JERUSALEM (Reuters) -Israel will lend the cash-strapped Palestinian Authority more than $150 million after the sides held their highest-level meeting in years, Israeli officials said on Monday, while playing down prospects of any major diplomatic breakthrough.

Defense Minister Benny Gantz, who has overall responsibility for the Israeli-occupied West Bank, travelled to the Palestinian self-rule area of the territory for previously undisclosed talks on Sunday with President Mahmoud Abbas.

A source close to Israeli Prime Minister Naftali Bennett said the premier had approved the Gantz-Abbas meeting and deemed it a “routine” matter. “There is no diplomatic process with the Palestinians, nor will there be one,” the source told Reuters.

U.S.-sponsored talks on founding a Palestinian state stalled in 2014. The Gantz-Abbas meeting took place as Bennett, a nationalist who opposes Palestinian statehood, returned from his first talks with U.S. President Joe Biden in Washington.

PA official Hussein Al Sheikh said the talks with Gantz included “all aspects” of Palestinian-Israeli relations.

Abbas coordinates West Bank security with Israel. Both sides are wary of Hamas Islamists who seized the Gaza Strip, another Palestinian territory, from Abbas in 2007.

But Israel chafes at stipends the PA pays to militants jailed or killed in attacks on Israelis. In a protest measure, the Bennett government last month withheld $180 million from 2020 tax revenues it collected on behalf of the PA. A Gantz spokeswoman said that policy was unchanged.

The 500 million shekel ($155 million) loan was meant to help “with vital PA functions” and would be repaid in 2022 out of future tax revenues collected by Israel, the spokeswoman said.

A White House statement said Biden, during his talks with Bennett on Friday, reiterated his support for a two-state solution to the Israeli-Palestinian conflict and “underscored the importance of steps to improve the lives of Palestinians”.

Bennett did not mention Palestinians in public remarks at the White House that focused largely on arch-enemy Iran’s nuclear program.

Gantz, a centrist in Bennett’s coalition government, has called in the past for resumption of a peace process with the Palestinians, who aspire to a state of their own in the occupied West Bank and Gaza Strip, with East Jerusalem as its capital. Israel captured those territories in the 1967 Middle East war.

But any renewed movement on the issue could shake the foundations of Bennett’s government of left-wing, rightist, centrist and Arab parties that in June ended the conservative Benjamin Netanyahu’s 12-year run as prime minister.

In a sign of friction within the coalition, Mossi Raz, a legislator from the left-wing Meretz party, said dismissal of prospects for renewed peace talks by the Bennett source was “outrageous.”

“A peace process is an Israeli interest,” Raz wrote on Twitter.

(Additional reporting by Dan Williams and Ali Sawafta; Editing by Angus MacSwan and Howard Goller)

Dozens dead as Israel and Hamas escalate aerial bombardments

By Nidal al-Mughrabi and Jeffrey Heller

GAZA/JERUSALEM (Reuters) -Hostilities between Israel and Hamas escalated on Tuesday, raising the death toll in two days to 30 Palestinians and three Israelis, with Israel carrying out multiple air strikes in Gaza and the Islamist militant group firing rockets at Tel Aviv.

A 13-story residential Gaza block collapsed after one of several dozen air strikes. Late into the night, Gazans reported their homes shaking and the sky lighting up with near-constant Israeli strikes.

Israelis ran for shelters in communities more than 70 km (45 miles) up the coast amid sounds of explosions as Israeli interceptor missiles streaked into the sky. Israel said hundreds of rockets had been fired by Palestinian militant groups.

For Israel, the militants’ targeting of Tel Aviv, its commercial capital, posed a new challenge in the confrontation with the Islamist Hamas group, regarded as a terrorist organization by Israel and the United States.

The violence followed weeks of tension in Jerusalem during the Muslim fasting month of Ramadan, with clashes between Israeli police and Palestinian protesters in and around Al-Aqsa Mosque, on the compound revered by Jews as Temple Mount and by Muslims as the Noble Sanctuary.

These escalated in recent days ahead of a – now postponed – court hearing in a case that could end with Palestinian families evicted from East Jerusalem homes claimed by Jewish settlers.

There appeared no imminent end to the violence. Israeli Prime Minister Benjamin Netanyahu warned that militants would pay a “very heavy” price for the rockets, which reached the outskirts of Jerusalem on Monday during a holiday in Israel commemorating its capture of East Jerusalem in a 1967 war.

“We are at the height of a weighty campaign,” Netanyahu said in televised remarks alongside his defense minister and military chief.

“Hamas and Islamic Jihad paid … and will pay a very heavy price for their belligerence … their blood is forfeit.”

Hamas – seeking the opportunity to marginalize Palestinian President Mahmoud Abbas and to present itself as the guardians of Palestinians in Jerusalem – said it was up to Israel to make the first move.

The militant group’s leader, Ismail Haniyeh, said in a televised speech that Israel had “ignited fire in Jerusalem and Al-Aqsa and the flames extended to Gaza, therefore, it is responsible for the consequences.”

Haniyeh said that Qatar, Egypt and the United Nations had been in contact urging calm but that Hamas’s message to Israel was: “If they want to escalate, the resistance is ready, if they want to stop, the resistance is ready.”

The White House said on Tuesday that Israel has a legitimate right to defend itself from rocket attacks but applied pressure on Israel over the treatment of Palestinians, saying Jerusalem “must be a place of co-existence.

White House spokeswoman Jen Psaki opened her daily news briefing with a statement about the situation, saying that President Joe Biden’s primary focus was on de-escalation.

The United States was delaying U.N. Security Council efforts to issue a public statement on escalating tensions because it could be harmful to behind-the-scenes efforts to end the violence, according to diplomats and a source familiar with the U.S. strategy.

Speaking on condition of anonymity, the source said Washington is “actively engaged in diplomacy behind the scenes with all parties to achieve a ceasefire” and was concerned that a council statement might be counterproductive at the moment.

Israel said it had sent 80 jets to bomb Gaza, and dispatched infantry and armor to reinforce the tanks already gathered on the border, evoking memories of the last Israeli ground incursion into Gaza to stop rocket attacks, in 2014.

More than 2,100 Gazans were killed in the seven-week war that followed, according to the Gaza health ministry, along with 73 Israelis, and thousands of homes in Gaza were razed.

PLUMES OF BLACK SMOKE

Video footage on Tuesday showed three plumes of thick, black smoke rising from the Gaza block as it toppled over. Electricity in the surrounding area went out.

Residents of the block and the surrounding area had been warned to evacuate the area around an hour before the air strike, according to witnesses, and there were no reports of casualties two hours after it collapsed.

People in other blocks reported that they received warnings from Israel to evacuate ahead of a possible attack.

In Tel Aviv, air raid sirens and explosions were heard around the city. Pedestrians ran for shelter, and diners streamed out of restaurants while others flattened themselves on pavements as the sirens sounded.

The Israel Airports Authority said it had halted take-offs at Tel Aviv airport “to allow defense of the nation’s skies,” but later resumed them.

Video broadcast on Israeli Channel 12 television showed interceptor missiles rising above the runways.

The International Committee of the Red Cross urged all sides to step back, and reminded them of the requirement in international law to try to avoid civilian casualties.

“The recent rockets in Israel and air strikes in Gaza represent a dangerous escalation of the tensions and violence witnessed over the past days in Jerusalem, including its Old City,” Fabrizio Carboni, ICRC regional director for the Middle East, said in a statement.

Israel’s Magen David Adom ambulance service said a 50-year-old woman was killed when a rocket hit a building in the Tel Aviv suburb of Rishon Lezion, and that two women had been killed in rocket strikes on the southern city of Ashkelon.

But the Israeli military said many of the rockets fired from Gaza had fallen short and wounded Palestinians, and that Israel’s Iron Dome air defenses had intercepted the bulk of those that made it across the border.

Violence has also ticked up in the occupied West Bank.

Israeli troops shot dead a Palestinian and injured another on Tuesday after they shot towards Israeli troops near the Palestinian city of Nablus, Israeli and Palestinian officials said.

(Reporting by Nidal al-Mughrabi, Dan Williams and Ari Rabinovitch; Additional reporting by Stephanie Nebehay in Geneva, Nandita Bose and Steve Holland in Washington and Michelle Nichols in New York, and Stephen Farrell and Rami Ayyub in Jerusalem; Writing by Kevin Liffey; Editing by Giles Elgood and Howard Goller)

As Arab Gulf starts opening to Israel, Palestinians face a reckoning

By Rami Ayyub

JERUSALEM (Reuters) – Israel’s rapprochement with Gulf Arab states has left the Palestinians feeling abandoned by traditional allies and clutching an old playbook in a rapidly changing Middle East, analysts and critics say.

As the United Arab Emirates and Bahrain prepare to sign normalization accords with Israel at a White House ceremony on Tuesday, Palestinian leaders face calls to overhaul their strategy to avoid becoming marginalized in a region where Israel and most Sunni Arab regimes share a fear of Iran.

The Palestinian approach to securing freedom from Israeli occupation has for years relied on a longstanding pan-Arab position that called for Israeli withdrawal from the occupied West Bank and Gaza and Israel’s acceptance of Palestinian statehood, in return for normal relations with Arab countries.

But the Palestinians last week failed to persuade the Arab League to condemn nations breaking ranks.

Tuesday’s ceremony, hosted by U.S. President Donald Trump, will be “a black day in the history of Arab nations”, Palestinian Prime Minister Mohammad Shtayyeh said on Monday.

Shtayyeh said the Palestinians are now discussing whether to “adjust Palestine’s relationship with the Arab League.”

But critics say the proposed move is too little too late, with President Mahmoud Abbas facing mounting criticism for their increasingly isolated position.

“There is very little indication that the (Palestinian) leadership is contemplating a break from its approach,” Tareq Baconi, an analyst with the International Crisis Group, told Reuters.

The Palestinians’ strategy centers on holding Israel to account in international legal tribunals, and trying to break the United States’ dominance over the Israeli-Palestinian peace process, Baconi said.

“Arab and European support in that strategy is crucial, but it is questionable that the Palestinians will be able to secure either to the level required to ensure a just peace.”

TWO-STATE SOLUTION

Despite signs of shifting Arab support, Saeb Erekat, Secretary General of the Palestine Liberation Organization (PLO), said the underlying Palestinian strategy for achieving a state in the West Bank, East Jerusalem and Gaza would not change.

“To stay on the grounds of international law, international legality, to seek peace based on ending Israeli occupation and a two-state solution … we cannot depart from these squares,” he told Reuters.

While conceding difficulties faced by a Palestinian leadership under Israeli occupation, analysts nevertheless say Abbas does have some options.

After years of in-fighting between the two main Palestinian factions, Abbas’s Fatah and Islamist Hamas, long-overdue elections would refresh the president and parliament’s mandate and boost their leverage abroad by increasing their legitimacy at home, analysts say.

“We need to … rebuild the PLO’s institutions from the ground up and cement relations between Palestinians here and in the diaspora,” Gaza analyst Talal Okal said.

Over six million diaspora Palestinians, he said, “can influence the communities they live in so the Palestinian cause has a place on the agendas of their host governments.”

TRUMP BOYCOTT

One area where Abbas has widespread public support – 70% in recent polls – is his two-year boycott of the Trump administration, which he accuses of pro-Israel bias over its recognition of Jerusalem as Israel’s capital and endorsement of Israel’s West Bank settlements.

Frustrated by the Palestinians’ refusal to take part in Trump-led talks, the White House has sought to bypass Abbas and his team, apparently hoping they will see the deals with the UAE and Bahrain as incentives to return to negotiations.

For more than two years Trump’s son-in-law Jared Kushner has tried sidestepping Abbas to appeal to Palestinians directly, telling Al-Quds newspaper in 2018: “The world has moved forward while you have been left behind. Don’t allow your grandfather’s conflict to determine your children’s future.”

That has had little apparent success. And the Palestinian leadership at first engaged with the Trump administration. Until, said Erekat, they concluded that “these people want to dictate a solution, not negotiate a solution … they’re the ones who are departing from international law.”

Dennis Ross, who served as a Middle East adviser under Republican and Democratic administrations, had cautionary words for both sides.

While the Gulf deals served notice that Palestinians “don’t have a veto on normalization as regional dynamics shift” the Israelis, he said, “cannot wish the Palestinians away — and standing pat also means increasing the risk of one state for two peoples.”

(Additional reporting by Nidal al-Mughrabi in Gaza, Ali Sawafta in Ramallah, Adel Abu Nemeh in Jericho and Matt Spetalnick in Washington; Editing by Stephen Farrell, William Maclean)