Both Hezbollah and Hamas receive support from Iran. A senior U.S. official told CNN last week that Iran is "finding ways to resupply Hamas" with long range rockets and other weapons.

The European Union, the United States, and Israel consider Hamas a terrorist organization. The United States and Israel also consider Hezbollah a terrorist group.

The Palestinian Authority's new U.N. status allows it to have cases heard before the International Criminal Court -- a concern for Israel as Palestinians have repeatedly tried to have their claims heard before the judicial body at the Hague.

International efforts for a "two-state solution" focus on a plan to unite Gaza and West Bank under the authority of a single Palestinian government. Palestinian leaders want the capital in east Jerusalem.

Palestinian officials have refused to enter into new talks with Israel until it stops building settlements on West Bank land. Netanyahu, meanwhile, has said there can be no such preconditions on talks. He has called on Hamas to renounce terrorism and accept the existence of Israel.