In other words, if Mr Netanyahu stuck to his verbal guns, a deal with even the most malleable Palestinians, let alone with a unity government including Hamas, would be virtually inconceivable.

ECONOMIST: The United States, Israel and the Arabs

Shalit was 19 when he was captured on June 25, 2006, by Palestinian militants in Gaza, including those from Hamas, which now controls the territory.

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Regarding the tensions in the Middle East, Israel appears to be taking a very hard line against Hamas, including the likelihood of moving ground troops into the Gaza strip.

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Israel is taking a very hard line against Hamas, including heavy air strikes in the Gaza Strip over the weekend and the possibility of moving ground troops into Gaza.

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Gilad Shalit was seized in June 2006 by Palestinian militants, including members of the Hamas group which runs Gaza, in an raid into Israel that also left two Israeli soldiers dead.

BBC: Shalit campaign steps up a gear

He said Hamas' participation violates international agreements, including the Oslo accords and the "road map" for Middle East Peace.

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That will give Hamas a right of veto over big decisions, including negotiations with Israel.

ECONOMIST: Palestinian reconciliation

As the reality of Hamas' win set in, American and Israeli leaders -- including hardliner Benjamin Netanyahu, who is running for Israeli prime minister -- began sharing their concerns.

CNN: Hamas' past casts shadow over peace plans