Washington 'blindsided' & Israel grim after rumored Palestinian agreement

"... Washington appeared to be blindsided by the reported agreement, however. Palestinian officials said that leaders would finalize the pact at a signing ceremony in Cairo by the end of the week.

Some veteran Middle East observers expressed skepticism ... But things could be different this time, thanks both to the time horizon of the planned Palestinian statehood bid at the UN in the fall, as well as the rapidly changing political dynamics in the Middle East. One key shift, of course, is the fall of Egypt's Hosni Mubarak, who had shared Israel's and Fatah's hostility to Hamas, which controls Gaza and which is an off-shoot of the Muslim Brotherhood. Meanwhile, the Syrian protests currently targeting the authoritarian rule of President Bashar al-Assad, complicate the political picture for the more vehemently anti-Israel and Islamist Hamas, which has long enjoyed Assad's support.

So far, the prospect of a more united Palestinian front hasn't touched off much enthusiasm among several key players in Jerusalem and Washington.

"You cannot have peace with both, because the Hamas aspires to destroy the State of Israel, and says it openly," Israeli Prime Minister Benjamin Netanyahu remarked in reaction to the news, according to a tweet from the spokesman for the Israeli embassy in Washington Jonathan Peled. And some commentators are worried that Hamas's participation would imperil Salam Fayyad, who is particularly despised by Hamas and seen as too close to Washington and Israel.

Jon Alterman, the director of Middle East studies at the Center for Strategic and International Studies, said while the details of the reported deal are still murky, "what's clear is how much of a problem Palestinian reconciliation will be for the Obama administration." Alterman frequently consults with the administration on policy to the Middle East, and cautions that the political dynamic in Washington isn't accommodating to a coalition government that includes Hamas. "The Republican House was deeply skeptical about any U.S. aid going to the Palestinian Authority even without Hamas participation in government. Sustaining any sort of aid relationship if Hamas shares power will be a herculean task."....

"Since it is unlikely [Netanyahu] will offer a peace plan, Palestinians needs to get their ducks in a row before September when they are going to the UN to declare a state and probably get overwhelming support doing so," according to former senior George H.W. Bush official, also speaking on condition of anonymity."