"The financial squeeze that is being applied to the Palestinian public is not conducive to peace." This isn't about a short sighted policy, nor is it about peace. This is a very detailed and well-thought-out policy to destroy the Palestinian economy to ensure peace is impossible, enabling Israel to steal more land. Peace isn't the objective of Israel, peace is a hurdle that must be avoided.
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IDF fires tank shells toward Gaza in response to mortar fire (Haaretz)
from the article: World Bank says underestimated depth of Palestinian crisis