Palestinian hopes rise over coalition deal

PALESTINIAN President Mahmoud Abbas and Prime Minister Ismail Haniyeh yesterday agreed that Fatah and Hamas would form a coalition government — a move that the Palestinians hope could lead to the easing of crippling international sanctions.

The compromise breakthrough, which falls short of international demands that Hamas fully renounce violence, could pave the way for renewed contacts between Israel and the Palestinian government.

Israeli officials voiced cautious support for the deal.