Hamas formally took power Wednesday, with the Palestinian president swearing in a 24-member Cabinet.
The ceremony, which came just a day after Israel's national election, ended a two-month transition period of ambiguity since Hamas's election victory in January.
With a Hamas government installed, the lines of confrontation were clearly drawn. Hamas says it won't soften its violent stance, and Israel's presumed prime minister-designate, Ehud Olmert, says that in this case, he'll set the borders of a Palestinian state by himself.
With Hamas at the helm, the Palestinian Authority also faces a crippling international economic boycott.