The phrase 'my enemy's enemy is my friend' just doesn't work in this region. Supplying weapons to defeat one enemy might work in the short term, but your other enemy will take over, with more sophisticated weapontry supplied by none other but those whom it will be used against. And they will still be your enemy. Fatah is not Israel's friends, they are not moderate; they are only more pragmatic vis a vis their inability to destroy Israel and create Palestine. Giving them weapons is stupid and won't benefit the region.
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from the article: U.S. pressing Israel to bolster pro-Abbas forces in Gaza