Israel's sudden Gaza dilemma

Potential humanitarian crisis? The UN says food will run out in about 10 days if Gaza stays sealed.

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Gaza's economy has been dependent on Israel since it was occupied in the Six-Day War of 40 years ago. Even after the "disengagement" in August 2005, in which Israel withdrew all settlers and soldiers from Gaza, it continues to need Israel both as a supplier of raw materials and a gateway for export and import.

The European Union (EU) announced Monday that it would resume direct aid to the PA, but will maintain its economic embargo on any contacts with Hamas. EU foreign policy chief Javier Solana said that aid to a Hamas-run Gaza would continue, but only by sending money through the UN. For Israel's part, Prime Minister Ehud Olmert says he will release $562 million in customs and tax revenue that it had been withholding in order to prevent funds from going to Hamas.

Amid the violence last week, the main provider of fuel to Gaza, the Israeli company Dor Alon, stopped the supply lines because of a lack of anyone to coordinate with on the Palestinian side. On Monday, however, the energy company announced that it would renew the sale of gas to stations in Gaza. Later this week, Israel's minister of infrastructure is expected to hold meetings with all of the companies that supply utilities to Gaza – including water, electricity, and fuel – to discuss whether Israel can continue being a supplier to Gaza at all. It issued an order Monday to stop cargo shipments.

A Hamas official says that Ismail Haniyeh – who maintains that he is still prime minister after his dismissal by Mr. Abbas – has expressed a willingness to deal with Israel on the level of everyday practicalities.

"Prime Minister Haniyeh already gave instructions to all his ministers to deal with Israeli counterparts for logistical and practical support that [is necessary] to meet Palestinian needs," says Hamas spokesman Fawzi Barhoum.

But everyone Israel used to coordinate with on the Palestinian side is no longer there, says Mr. Regev. "Are we supposed to work with militants, when these are the same militants who are holding Gilad Shalit?" (Israeli army Corporal Shalit was kidnapped outside Gaza about a year ago.)

Where to draw the line between humanitarian support and averting a deeper crisis is a question that Israel and Western donors seem deeply unsure of. Scott Lasensky, an expert on the use of aid in conflict resolution, says that all doors are best left open.

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