Israel has stepped up its military offensive against Palestine. Codenamed Operation Summer Rain, it began on June 28 in response to the kidnapping of Corporal Gilad Shalit of the Israel Defence Forces (IDF). Palestinian militant groups kidnapped Shalit on June 25 when they raided a military post near Kibbutz Kerem Shalom in Israeli territory just outside the Gaza Strip. The militants had infiltrated into Israel through a 300-metre tunnel dug under the Gaza border fence near the military post. Two Israeli soldiers, Lt. Hanan Barak and Sgt. Pavel Slutsker were killed in the attack.

In the post Yasser Arafat era, politics in the Gaza Strip is taking a completely different turn. For the last few years Ariel Sharon had taken a very tough stand against the militant group Hamas. However, now, particularly when Sharon is fighting for his life in the hospital, the Hamas's overwhelming victory in the Palestinian elections is likely to change the political dynamics of the region incalculably.

Two very important elections are set to take place in Israel and in the Palestinian territories - the Israeli Legislative Elections on March 28 and the Palestinian Parliamentary elections for the Legislative Council on January 25. Both events are beset with equal amounts of tension, confusion and turmoil, resulting in extremely strained run up to the elections.

The resignation of Prime Minister Ariel Sharon from the ruling Likud party in Israel has set off reverberations not only within Israel but at the regional level as well. Many Israelis and Palestinians, both politicians and scholars, believe that Sharon’s decision to leave the Likud has brought about a political earthquake that could realign not just the political configuration within Israel but also have a significant effect on the peace process.