Timeline
Hamas won the 2006 Palestinian elections. As a result, Israel, the United States, the European Union, several Western states, and the Arab states imposed sanctions suspending all foreign aid, upon which Palestinians depend.
On 8 February 2007, negotiations in Mecca produced agreement on a Palestinian national unity government signed by Mahmoud Abbas on behalf of Fatah and Khaled Mashal on behalf of Hamas. The new government was called on to achieve Palestinian national goals as approved by the Palestine National Council, the clauses of the Basic Law and the National Reconciliation Document (the "Prisoners' Document") as well as the decisions of the Arab summit.
In March 2007, the Palestinian Legislative Council established a national unity government, with 83 representatives voting in favor and three against. Government ministers were sworn in by President Mahmoud Abbas at a ceremony held simultaneously in Gaza and Ramallah. In June that year, Hamas took control of the Gaza Strip from the national unity government after forcing out Fatah.
On 14 June 2007, Palestinian President Mahmoud Abbas announced the dissolution of the March 2007 unity government and the declaration of a state of emergency. Ismail Haniya has been dismissed, and Abbas will rule Gaza and the West Bank by presidential decree.
Following the takeover of the Gaza Strip Egypt and Israel largely sealed their border crossings with Gaza, on the grounds that Fatah had fled and was no longer providing security on the Palestinian side. Egypt fearing a spill-over of Hamas-style militancy into their territory assisted in the blockade. The sanctions were tightened in response to rocket attacks on southern Israel and Palestinian militant attacks on crossing points between Israel and Gaza.
Read more about this topic: Palestinian March 2007 National Unity Government