Israel launches a post-Christmas war against Gaza, killing over 200 Palestinians in the first day alone.  The intense aerial bombardment is the worst suffering the tiny and densely populated territory has faced in its 60-year history.  Israel’s Defence Minister, Ehud Barak, has declared an “all-out war against Hamas”.

On Friday, Hamas suspended its six-month truce with Israel, announcing that the ceasefire would not be extended.

U.S. Secretary of State Condoleezza Rice paid a visit to Palestinian President Mahmoud Abbas in the West Bank, providing support to the latter in his ongoing confrontation with rival Hamas, while also acknowledging the end of the Bush administration’s peace initiative. 

With Israeli support, Palestinian President, Mahmoud Abbas, has moved his armed loyalists into key West Bank cities in preparation of a possible conflict with his rival Hamas in January. 

On Monday, Israel’s Foreign Minister, Tzipi Livni, won the leadership race of the Kadima Party, the ruling party in the Knesset, Israel’s parliament, following the resignation of the former leader ex-PM Ehud Olmert. 

Israeli Prime Minister Ehud Olmert is being investigated for bribery and tax evasion. His popularity has plummeted, and he may be indicted within the month in which case he has pledged to resign.

Rising tensions between Israel, Hamas and Hezbollah have prompted both diplomatic support for and condemnation against Israel’s isolation of Gaza, expansion in the West Bank and possible plans for a large-scale military operation.