The Palestinian flag. (Creative Commons)

Fatah, the secular party that controls the West Bank, and Hamas, a militant Islamist group that controls the Gaza Strip, have united for the first time in four years in an effort to move Palestine closer to independence from Israel.

"We have turned the page on division forever," said Mahmoud Abbas, the Fatah leader. "The Palestinian cause has gathered momentum and a unified voice."

Unity forever, though, does not seem likely to some living in the region.

'It's a positive step but we remain sceptical," Ebaa Rezaq told the BBC. "We think there were a lot of reasons why Fatah and Hamas were pushed together to make a deal, whether they liked it or not."

Israeli leaders also reacted hesitantly to news of the deal.

“I think that the chance there will be real reconciliation between the sides over the next two or three years is slim,” said Yuval Diskin, the chief of the Israel Security Agency (Shin Bet).

There is also fear that the pact will halt peace negotiations between Israel and Palestine, because of the polar views of Fatah and Hamas on Israel, which occupies Palestine. Hamas refuses to recognize Israel, a stance that concerns Israeli leaders.

"What happened today in Cairo is a tremendous blow to peace and a great victory for terrorism," said Israeli Prime Minister Benjamin Netanyahu.

Hamidreza Taraqi, a former lawmaker, similarly feels Wednesday's deal threatens U.S.-backed talks between Israel and Palestine.

“The agreement between the Palestinian movements of Fatah and Hamas will not only halt the peace talks, but will also strengthen the resistance movement,” Taraqi said.

Al Jazeera reports that the reconciliation is a bold move by Palestine with a clear message to Israel:

That the rival factions of Fatah and Hamas were able to reach agreement shows their confidence in a new political landscape. To incur the wrath of Israel and the USA may cripple the embryonic economy of the West Bank, and bring fresh misery to besieged Gaza. They are placing their faith in the Arab Spring, and particularly Egypt, to deliver a just peace. It is a gamble, but to pursue US-mediated talks with Israel any longer would have been delusional and self-defeating.

Riding the crest of its own wave, Egypt is a good ally to have at the moment. Their status is restored as the Arab world's most powerful voice, and the Palestinian issue has assumed priority status surprisingly quickly after the revolution. A new attitude to the conflict is developing, exemplified by new foreign minister Nabil el-Arabi's recent statement: "It is time to stop managing the [Israeli-Palestinian] conflict, it's time to end it."