Palestinian Authority President Mahmoud Abbas says he has reached an agreement with militant group Hamas to form a coalition Palestinian government. The move that could pave the way for the lifting of international aid restrictions imposed on the Palestinians since Hamas' dramatic election victory earlier this year.
The news could also have an impact on the two-week-old general strike by thousands of government workers, including school teachers. The impoverished Hamas-led government has been unable to pay them.
But it is still not clear whether the new government, if formed, would accept demands from Israel and the United States that Hamas recognize Israeli statehood and renounce violence. Those are the preconditions for a resumption of badly needed aid for the Palestinian government.