Howdy Just Curious; You asked, "why would the Israeli`s wait until just after the election of Haniyeh to make a big deal of withholding the funds?" In the first place, PM Haniyeh was not "elected" last saturday; he was reconfirmed as PM of a new coalition government--a proceedure which is permissable under a parliamentary system without a popular vote. The "big deal" of Israel continuing to withhold funds came about due to the Israeli Cabinet voting on the issue which it couldn't really do until after the new Palestinian government was formed and its platform became clear. Bizarre isn't it? Theoretically, Kadima could dump Labor and some other left-wing parties and form a coalition with Likud and some right-wing parties, form a new center-right government (instead of center-left) provided that it had a majority in the Knesset, and it could all be done without holding national elections. We could never do something like in the U.S. "behind the scenes" as it were.
Iraqi police fire tear gas as thousands of protests burst into Green Zone, storm Parliament (AP)
from the article: Egypt says would-be Hamas suicide bomber arrested near Israeli border