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In the 1990s, Israel and the PLO negotiated and signed the Oslo Accords. They created the Palestinian Authority (PA) to exercise partial control over parts of Palestine.
In 2007, internal divisions between Palestinian political factions led to a takeover of the Gaza Strip by Hamas. Since then, the West Bank has been governed in part by the Palestinian Authority, led by Fatah, while the Gaza Strip has remained under Hamas's control.
Israel has built settlements in both of the Palestinian territories since the start of the occupation. The settlements in the Gaza Strip were dismantled in Israel's unilateral disengagement in 2005. About 670,000 Israeli settlers live in settlements in the West Bank.
The international community considers Israeli settlements in Palestine to be illegal under international law, but the Israeli government disputes this.
Challenges
Currently, the biggest challenges to the country include the Israeli occupation, partial blockade, restrictions on movement, expansion of Israeli settlements, settler violence, corruption, ethnic cleansing, genocide, and an overall poor security situation. Palestine's borders, the legal and diplomatic status of Jerusalem, and the return of Palestinian refugees are unresolved questions.
↑Before 2023, Gaza City was the largest city in the State of Palestine. Following attacks by Israel, a large amount of refugees from Gaza City and elsewhere in the Strip evacuated into the border city of Rafah, effectively making it the most populous city.
↑Israel's Disengagement Plan: Renewing the Peace ProcessArchived 2 March 2007 at the Wayback Machine: "Israel will guard the perimeter of the Gaza Strip, continue to control Gaza air space, and continue to patrol the sea off the Gaza coast. ... Israel will continue to maintain its essential military presence to prevent arms smuggling along the border between the Gaza Strip and Egypt (Philadelphi Route), until the security situation and cooperation with Egypt permit an alternative security arrangement."
↑Miskin, Maayana (5 December 2012). "PA Weighs 'State of Palestine' Passport". israelnationalnews.com. Arutz Sheva. Archived from the original on 7 December 2012. Retrieved 8 June 2014. A senior PA official revealed the plans in an interview with Al-Quds newspaper. The change to 'state' status is important because it shows that 'the state of Palestine is occupied,' he said.
↑According to Article 4 of the 1994 Paris Protocol, the State of Palestine has no official currency. The Protocol allows the Palestinian Authority to adopt multiple currencies. In the West Bank, the Israeli new sheqel and Jordanian dinar are widely accepted, while in the Gaza Strip the Israeli new sheqel and Egyptian pound are widely accepted.
↑"Israel defies UN after vote on Palestine with plans for 3,000 new homes in the West Bank". The Independent. 1 December 2012. Archived 2017-10-18 at the Wayback Machine
↑History.com Editors (16 February 2018). "Oslo Accords". History.com. A&E Television Networks. Retrieved 24 September 2026.{{cite web}}: |last= has generic name (help)