A senior US administration official has said Washington would review its assistance to the Palestinians - after rivals Hamas and Fatah agreed to form a unity government.
The US considers Hamas a terrorist organisation. The State Department says the deal that was signed on Wednesday in Gaza could derail US efforts to reach a peace agreement between the Palestinians and Israel.
Secretary of State John Kerry has been trying to bridge differences between the two sides.
For its part, Israel has been outspoken against the Palestinian reconciliation, with Prime Minister Benjamin Netanyahu saying Palestinian leader Mahmoud Abbas has chosen Hamas over peace. Then Israel canceled a meeting with Paletinian negotiators.
So, is this deal really a danger to peace? Or are the United States and Israel exaggerating their concerns?
Presenter: Mike Hanna
PJ Crowley, former US State Department Spokesman and former US Assistant Secretary of State for Public Affairs.
Hanan Ashrawi, Executive Committee Member of the PLO and a Palestinian Legislator.
Gil Hoffman, Chief Correspondent for the Jerusalem Post.
Source: Al Jazeera