Israel released 26 Palestinian prisoners ahead of renewed Mid-East peace talks. Hopes are high the two sides will find a lasting peace.
A senior Hamas figure has said the group will not dismantle its powerful armed wing or recognize Israel. It came in response to Washington demanding Hamas meet those conditions to join any Palestinian unity government.
Rival factions Fatah and Hamas have reached a reconciliation deal to form a unity government. Under the deal, the Palestinian Authority will take over governing in the Gaza Strip.
Both sides voiced optimism as talks began in the Egyptian capital, with a top Hamas representative saying he was "full of hope" for reconciliation. Egypt has been instrumental in bringing the two sides together.
Palestinian Prime Minister Rami Hamdallah is visiting Gaza to negotiate a Hamas-Fatah unity government. But Netanyahu has said Hamas needs to make three specific concessions for Israel to accept any eventual deal.
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