Fatah and Hamas, the two most important Palestinian political factions, Wednesday signed a reconciliation pact ending their years of hostility. The two have agreed to have unaffiliated technocrats prepare for a parliamentary election within one year. Though overshadowed by Osama bin Laden's death and diluted by reports of Arab street politics, this new development will certainly have far-reaching implications for Middle East regional politics.

Fatah and Hamas, as political organizations, actually represent two kinds of political thought and movements with the shared cause of Palestinian nationhood. While Fatah has long adhered to fulfilling the Palestinian national cause via political and diplomatic means, especially after Mahmoud Abbas succeeded Yassir Arafat as leader of the group, Hamas has persistently pursued radical responses to Israel's military invasion and territorial encroachment.

Their different approaches have finally resulted in Palestine's division as the West and Israel's support for the Palestinian Authority led by Mahmoud Abbas and isolation of Hamas despite Hamas's victory in the 2006 Palestinian parliamentary election. Internal division has neutralized the strengths of both factions and further weakened their bargaining power in negotiations with Israel.

One pact of reconciliation cannot solve all the problems between the two factions, but it has been greatly elevated the once upset morale out of the division, and improved the confidence of the general Palestinian populace as the recent, jubilant Palestinian parade suggests. In the mid and long run, the alliance will allow Palestinians to more effectively participate in the peace process in a cooperative and integrated way.

Israelis regard Palestinian reconciliation as against their national interests. Israeli Prime Minister Benjamin Netanyahu denounced the pact as "a tremendous blow to peace and a great victory for terrorism", and fully backed a decision to delay transferring the tax revenue Israel collect on the Palestinians' behalf. In addition, Netanyahu has started a journey to Europe to persuade Britain and France to oppose recognition of the deal in the United Nations.

Short-sighted policy makers may have reasons to oppose the new government, half of which advocates radical policy. However, far-reaching Israeli strategists would take the Palestinian reconciliation as in its long-term fundamental interests rather than seek short-term gains by taking advantage of Palestinians' internal division. Israel cannot always profit from its enemy's domestic conflicts.