Hamas' biggest political nightmare almost became reality yesterday evening. For a moment it had seemed as if Israel would release Palestinian prisoners without waiting for the release of abducted soldier Gilad Shalit, in anticipation of the meeting between Palestinian Authority Chairman Mahmoud Abbas (Abu Mazen) and Prime Minister Ehud Olmert in Jerusalem.

Abu Mazen would then have been depicted as the one who brought about the prisoner release after negotiating with Israel rather than through abductions and violence. Hamas' stubborn refusal over six months to propose concessions in the deal on releasing prisoners, which has meanwhile cost the Palestinians 500 lives, would have put the "heroic campaign" of that organization in a ridiculous light.

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But everyone can breathe easily. Olmert "insisted," as his bureau put it, he would not release the prisoners before Shalit. Hamas and Islamic Jihad went to the trouble of explaining that Abu Mazen had bowed to Israeli directives and the chance to strengthen Abu Mazen was lost, but perhaps Olmert came out stronger.

All the same, Abu Mazen came to meet Olmert at the prime minister's Jerusalem residence. His stony face was a clear indication of what had brought him to the city. The meeting had been forced on both of them, particularly the PA chairman. At a time when he is busy warring with Hamas, he was obliged to show the American secretary of state, and the British premier, that his intentions for peace with Israel are serious.

Nevertheless the Palestinians have for a while felt a possible change in the Israeli diplomatic line.

People in the Muqata are closely monitoring the feelers put out by Tzipi Livni during her meeting with Abu Mazen in New York, about renewed peace talks, as well as trying to decide whether Olmert was serious in his intentions announced at Sde Boker. At the same time, one of Abu Mazen's advisers recently told Haaretz that the White House and State Department in Washington are showing signs of wishing to step up the peace process. In the wake of the Baker-Hamilton report, Ramallah officials also believe Condoleezza Rice would prefer concrete steps to move the Israeli-Palestinian process forward to talk about peace with Syria.

At the end of the day, Abu Mazen did not leave the Olmert meeting with his hands completely empty. The PA chair needs money, particularly for the upcoming Palestinian elections, and $100 million is a hefty sum, especially in Palestinian terms, and particularly on the eve of Id al-Adha.

Olmert's decision to release even some of the PA's money will assist the rais in his campaign for the support of the Palestinian public, particularly vis-a-vis the Iranian funds that were promised to Hamas. Now the Palestinians will face a dilemma. What is preferable? Having $100 million that belongs to the Palestinians but is in the hands of the Israeli enemy or $250 million from the "axis of evil" in Iran?