Palestinians, along with the rest of the world, rung in 2010 with mixed feeling about what the new year will bring. This January marks the first anniversary of Israel's invasion into Gaza, also known as Operation Cast Lead, which resulted in the deaths of over 1,400 Palestinians and the destruction of much of the Strip. While the operation ended on January 21, 2009, the consequences of the war continue on. On January 1, Israeli army planes bombed two tunnels in Gaza, injuring four Palestinians. Israel says the strikes were in response to the firing of rockets into the southern Israeli town of Netivot.

Furthermore, the Israeli siege on Gaza continues unabated. As a means to break the siege, the Viva Palestina convoy tried to enter the Strip via Egypt but was denied entry. On December 28, the 400 members of the convoy declared a hunger strike to protest Egypt's refusal via the Red Sea port. The convoy, led by British MP George Galloway includes 150 vehicles with several tons of humanitarian aid. On December 29, the convoy made a detour to Damascus in another attempt to make it through to Gaza via the Arish crossing. On January 2, Turkey announced that a Turkish ship will carry the convoy to Al Arish port from Syria.

Meanwhile, the prisoner exchange deal between Hamas and Israel has still not seen the light of day, with both sides blaming the other. On January 1, according to Al Madina, a Saudi daily, Egyptian President Husni Mubarak urged Israeli Prime Minister Benjamin Netanyahu to accept Hamas' demands for the prisoner swap in order to get abducted Israeli soldier Gilad Shalit home.

According to the article, Mubarak reportedly told the Israeli premier during their talks in Cairo earlier this week that if Israel showed some flexibility in terms of Hamas' demands, Egypt would make sure the deal would go through. Still, Israel has insisted on its demand to exile over 100 prisoners after they are released and has objected to the release of four top leaders including Marwan Barghouti and PFLP leader Ahmad Saadat.

Still, Hamas has not rejected the idea of a swap outright. On December 30, a Hamas delegation headed by Mahmoud Zahhar arrived in Cairo from Syria after holding consultations with the Hamas leadership there on the prisoner deal. While the movement said Israel's offer was unacceptable, it also said it would agree to another round of negotiations with the help of the German mediator. Said Hamas official Ayman Taha, "We cannot say the deal has failed or reached a dead end, and we cannot say that the talks resulted in achieving the deal, but the negotiations will continue."

A day earlier, Egypt also said it opposed Israel's demand to deport some of the released detainees. "Palestinians must live in the Palestinian territories," Egyptian Foreign Minister Ahmad Abu Gheit said. "Expelling some of them is unacceptable." Abu Gheith also opined on the stalled talks between Israelis and Palestinians, towing the Palestinian line that settlements must come to a complete halt before negotiations could be resumed. "Any negotiations have conditions and we don’t negotiate with the continuation of settlements," he said.

On his part, President Mahmoud Abbas addressed the nation on the anniversary of Fateh's founding, which coincides with the New Year. On December 31, Abbas delivered a speech from his headquarters in Ramallah vowing to "spare no effort in supporting Palestinians in the besieged Gaza Strip." The President went on to show his solidarity with Gaza. "Your suffering is ours – we will continue supporting you. We will offer every possible means of support,” he said.

Hamas was unimpressed by the president's show of support, calling it "comic".

Earlier, on December 27, Abbas released a statement on the occasion of the first anniversary of the war on Gaza during which he said the Palestinian Authority was determined to pursue Israeli war criminals. "We renew the oath and say that the blood of hundreds of martyrs and injured will not be in vain." He also added that the aggression on Gaza would not have taken place, at least on such a wide scope if Hamas' coup had not occurred in the first place since it, "removed the Gaza Strip from under the umbrella of Palestinian national and legal legitimacy."

In the West Bank, an eight-year old boy was shot and injured in the head on January 1 during the weekly demonstrations against the separation wall in Bilin. On December 30, Jewish settlers uprooted 150 olive trees in Wadi Qana, which belong to the Ramallah-area village of Deir Istiya and on December 29, Israeli soldiers at a Bethlehem checkpoint stopped and beat three Palestinian workers, breaking their legs. A fourth was arrested.

Furthermore, on December 28, Israeli authorities announced plans to build nearly 700 new housing units in east Jerusalem settlements including Neve Yacov, Pisgat Zeev and Har Homa. The announcement sparked criticism, not only from Palestinians but from the international community as well. The White House issued a statement the same day expressing its dissatisfaction with Israel's decision. The United States opposes new Israeli construction in East Jerusalem. The status of Jerusalem is a permanent status issue that must be resolved by the parties through negotiations and supported by the international community," press secretary Robert Gibbs said.

The Swedish presidency of the European Union also issued a statement saying it was “dismayed” at the announcement. “Settlements on occupied land are illegal under international law,” the statement said. “The Presidency of the European Union thus urges the Government of Israel to reconsider these plans.”

“The Presidency recalls that the European Union has never recognized the annexation of East Jerusalem in 1967. If there is to be a genuine peace, a way must be found through negotiations to resolve the status of Jerusalem as the future capital of two states."

Settlement construction is not only in east Jerusalem, though. According to the Israeli daily Haaretz on December 31, construction is ongoing in the West Bank as well, in spite of Israel's declared 10-month moratorium on construction. The Haaretz report said construction is being carried out in the Barkan and Ariel settlement industrial zones as well as houses in Ariel, Elkana North, Peduel and Kfar Tapuah.

Finally, President Abbas warned on January 1 that the Palestinian leadership may have to reconsider its West Bank security coordination with Israel if the latter continues to carry out army operations like last week's Nablus raid, which ended in the killing of three unarmed Palestinians, execution-style. "Recently, Israel's provocations and incursions have increased," the President told Palestine Television. "We are now at a point of review, where we must consider many things. If the [security] coordination does not lead to a halt in the incursions and the provocations, we will think again," he said.