The Associated Press: Palestinian deal ends rift, hurts peace prospects: "CAIRO (AP) — Rival Palestinian factions Fatah and Hamas signed a landmark reconciliation pact on Wednesday, ending a four-year rift that had divided the territory envisioned for a future Palestinian state. The deal plunged Israeli-Palestinian peacemaking deeper into uncertainty as Prime Minister Benjamin Netanyahu called it a 'mortal blow to peace.'
The agreement, which followed years of bitter acrimony between the two Palestinian movements, was made possible in large measure by the political changes sweeping the Arab world and the deadlock in U.S.-brokered peace talks with Israel.
A unity government foreseen by the accord would also allow the Palestinians to speak with a single voice if they go ahead with plans to ask the United Nations to recognize Palestine as a state during the annual General Assembly session in September.
With Wednesday's signing, Palestinian President Mahmoud Abbas, whose Palestinian Authority governs the West Bank, joined forces with Khaled Mashaal, the Syrian-based head of Hamas, which rejects Israel's existence and is backed by Iran.
The alliance set off ecstatic celebrations in the Palestinian territories — and warnings from both the Obama administration and international mediator Tony Blair that the new Palestinian government must recognize Israel or risk international isolation."