The Oslo peace process was based upon Israel ceding authority to the Palestinians to run their own political and economic affairs. In return, it was agreed that Palestinians would promote peaceful co-existence, renounce violence and promote recognition of Israel among their own people. Despite Yasser Arafat's official renouncement of terrorism and recognition of Israel, some Palestinian groups continue to practice and advocate violence against civilians and do not recognize Israel as a legitimate political entity.Simultaneously, at the time of Hamas's victory in the 2006, polls indicated that 66% of Palestinians supported mutual recognition and a two-state solution to the Palestinian-Israeli Conflict.
It is widely felt among Israelis that Palestinians did not in fact promote acceptance of Israel's right to exist. Palestinians respond that their ability to spread acceptance of Israel was greatly hampered by Israeli restrictions on Palestinian political freedoms, economic freedoms, civil liberties, and quality of life. Many feel that their own opposition to Israel was justified by Israel's apparent stifling of any genuine Palestinian political and economic development.
Israel cites past concessions, such as Israel's disengagement from the Gaza Strip in August, 2005, which did not lead to a reduction of attacks and rocket fire against Israel, as an example of the Palestinian people not accepting Israel as a state. Palestinian groups and Israeli Human Rights organizations (namely B'tzellem) have pointed out that while the military occupation in Gaza was ended, the Israeli government still retained control of Gaza's airspace, territorial water, and borders, legally making it still under Israeli control. Practically, they also point out that mainly thanks to these restrictions, the Palestinian quality of life in the Gaza Strip has not improved since the Israeli withdrawal. Furthermore, given that the Israeli army has run incursions into the Gaza Strip on various occasions, closed off its borders, and placed an embargo on the region, the Gazan economy has since gone into free fall. This has led and continues to result in warnings of the Palestinian population becoming more radicalized unless conditions improve.
Many significant Palestinian militant groups refuse to recognize Israel's existence, based on their belief that Israel has repeatedly taken Palestinian resources and violated their perceived rights. Based on this, they seek to destroy Israel at some point in the future. It is unclear how much popular support they have. In response, some Israeli groups and individuals oppose any territorial or political concessions to Palestinians.