Palestinian politics are on the brink of an explosion. That is the obvious conclusion to be drawn from what happened within the Palestinian leadership over the weekend: Palestinian Authority Chairman Mahmoud Abbas (Abu Mazen) informed U.S. Secretary of State Condoleezza Rice, and the general public, that his negotiations with Hamas over the formation of a national unity government had definitively failed, and that he was about to institute new measures. His spokesmen said that within a few days, the chairman would make a dramatic speech in which he would announce the dissolution of the Hamas government and the establishment of a temporary government of technocrats until new elections can be held.

Against this background, Abu Mazen convened the PLO's executive committee (which is technically above the government, because it represents the entire Palestinian people, whereas the government was elected solely by residents of the West Bank and Gaza, who comprise only about half the Palestinian people). The executive committee called on PA Prime Minister Ismail Haniyeh to resign, on the grounds that he has failed. Hamas leaders utterly rejected this demand, and warned that such statements effectively constitute an illegal attempt at an anti-democratic putsch.

The impression this creates is that the sides are heading toward a violent confrontation, perhaps a civil war. For Israel, such a development could be dangerous, because it is clear that if Hamas is ousted from the government, it will cease its hesitant efforts to become a legitimate political movement and return to being strictly a terrorist organization, whose entire resources are devoted to carrying out attacks against Israel.

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Yet some members of the Palestinian leadership who met with Rice and her staff last week say that despite this gloomy picture, the Americans believe that it is possible to find a way out - specifically, by means of a more moderate approach to Hamas. It could be that they have already taken steps in this direction. Perhaps it is no accident that the Egyptian government gave a dignified welcome last week to Hamas leader Khaled Meshal, as well as to Haniyeh. It is not inconceivable that the Americans persuaded Cairo to do this.

Haniyeh, for whom this is the first diplomatic trip abroad since his election, met with top-ranking Egyptian government officials. From there, he went to Qatar (for the Asian Games, which Israel is boycotting due to Hamas' participation), and he will then proceed to other Arab countries, finishing with a pilgrimage to Mecca. Haniyeh will be away from Gaza for about a month, and during this time, it might be possible to untie the knot that has formed among the four issues that underlay the Palestinian crisis.

These four issues are: the establishment of a unity government; the cease-fire; the return of kidnapped soldier Gilad Shalit in exchange for an Israeli release of Palestinian prisoners; and the lifting of the economic and diplomatic boycott of the Palestinian government. The Israeli government has a role to play in all of these - first and foremost in the cease-fire and the prisoner release. An intensification of the Israel Defense Forces' security operations in the West Bank might well cause the cease-fire to collapse. The situation is clear: More raids, arrests, deaths, assassinations and restrictions at checkpoints will provoke a response, and the time could come when Hamas and others will no longer restrain themselves and will resume launching Qassam rockets. Therefore, a policy of Israeli restraint, which could lead to greater calm in the West Bank, is essential.

In order to maintain the cease-fire and promote a resolution of the crisis, Israel could also be more generous with regard to releasing prisoners in exchange for Shalit. It is true that a prisoner release will strengthen Hamas and bolster its prestige, but part of the deal would be the dissolution of the Hamas government, so the movement would also pay a price. The release of a large number of prisoners, and especially "veteran" prisoners who have already served more than 20 years, could generate a breakthrough.

In addition, Israel should release Marwan Barghouti. Admittedly, he was convicted of dispatching murderers - but, as is well known, when a thief is needed, you take him from the gallows. All Israeli governments have followed this principle when they negotiated with Arab leaders, from Egyptian president Anwar Sadat through Yasser Arafat. And in the end, we will also talk with Barghouti.