Mahmoud Abbas has set up an emergency government, a move which should relax the Western embargo against the Palestinian Authority.

It comes as gunmen loyal to his Fatah movement capture Hamas bases in the West Bank.

This, in turn, is making a mockery of claims that the Palestinians will remain as one principality. Hamas says it does not intend to set up a state in Gaza, but that is the reality. Fatah’s offensive in the West Bank only consolidates the split.

The US is backing Abbas. This makes sense in the context of American foreign policy; the US is an ally of Israel and of the two main Palestinian groups Fatah is the only one which recognises Israel’s right to exist.

Hamas, on the other hand, wishes to destroy the nation.

The relaxation of sanctions could be an a major PR boost for Fatah and Abbas in particular. His party is largely responsible for its own downfall, but most Palestinians are willing to back whoever will get them food and the basic necessities. Thus, if Abbas is seen to have brought much-needed aid to his people his stock among them will rise.

However, he also exposes himself to claims of being a US puppet. This would be valuable propaganda from a Hamas perspective, but would not be of great significance among his citizens.

Gaza now seems fairly calm. But its future is uncertain; it is not a viable state by itself. The Gazan economy has been in freefall in the last six years, most of its industry is small-scale family operations and it depends on Israel for electricity.

An idealistic solution would be the disarmament of both Hamas and Fatah fighters by a strong international force under UN leadership. However, this is highly unlikely.

The political will just isn’t there for countries to send their troops to Palestine. The Gazans may only accept soldiers from Muslim nations, but this is a situation Israel would not tolerate.

This is not a scenario with an easy resolution on the horizon. Such a UN force would be stationed there for years; and given the difficulty the world body has had in forming a mission to Lebanon I can’t see it getting the numbers and resources it would need for a Gazan force.

Dialogue between the Palestinian groups is another possibility, although it may be some time for the situation to calm enough for this to take place. Even before the civil war numerous truces were called between the sides only to be broken hours later.

Do you think the crisis can be resolved?

The Palestinian civil war has put paid to hopes for a peaceful solution to the Middle East conflict.

The more moderate Fatah movement has been over-run in the Gaza Strip, with the Islamist Hamas taking key security posts all across the region. It has now captured Fatah headquarters in Gaza.

The image of the green Hamas flag flying above the building is possibly the most defining of the day.

All too late, Palestinian president Mahmoud Abbas has ordered his presidential guard to strike back. Yesterday, Fatah officials said there had been confusion: were they allowed to fight back or not?

Their resistance has crumbled; I have a feeling the claims of confusion were a desperate attempt to explain away just how easily Hamas has crushed its rivals.

“We are telling our people that the past era has ended and will not return, ” Islam Shahawan, a spokesman for Hamas’ militia, told Hamas radio. “The era of justice and Islamic rule have arrived.” (AP)

Given that Hamas is apparently executing Fatah policemen the definition of “justice” seems rather elastic, wouldn’t you say?

There is no hope for a negotiated solution between Hamas and Israel. Fatah’s decline, which began with an election drubbing fueled by a widespread perception of corruption and inefficiency, is complete (at least in the Gaza Strip).

The ambition had been for a two-state solution in the Middle East. The Palestinian state would consist of the Gaza Strip and the West Bank, both of which are fenced off from Israel.

The only viable way for such a split Palestinian state would be a highway crossing Israel; this was planned but there is no way Israel will allow militants such easy access to its territory.

And it must be pointed out that not all Palestinians back either Hamas or Fatah. One wrote to al-Jazeera earlier today: “Hamas and Fatah should go to hell and leave the Palestinian people alone.”

Hamas is unlikely to repeat its success in the larger and more populous West Bank, where Fatah is taking the initiative. I actually laughed when I read an AP report saying Abbas was considering withdrawing from the ruling coalition with Hamas. Strikes me as the first thing he should have done this morning.

The likelihood of an Israeli incursion into Gaza, which it evacuated in 2005, has soared. Hamas are not going to sit back on their Gazan victory, they will press an attack on Israel. It does not recognise the nation’s right to exist and has been firing rockets over the border for some time.

We now face the possibility of separate Hamas and Fatah states. EU humanitarian aid has been suspended. The UN can not distribute the aid which so many Palestinian people rely on. Egypt should be bracing itself for a flood of refugees and the formation of an Islamist nation on its northeastern border.

The dream of peace which was fostered by the 1993 Oslo Accords is shattered. All hope is lost.