Economy of the Gaza Strip

Israel's army said Wednesday it took control of a vital Gaza-Egypt corridor it suspects aided weapons smuggling as  U.S. said new U.N. resolution on the war in Gaza will not going to change the situation on the ground.

The decision was reached after intensive diplomatic engagement by the administration of U.S. President Joseph Biden, an American official told The Times of Israel.

Turkish and Israeli teams have made progress toward finalizing an agreement to mend ties between the two countries, agreeing that a deal will be finalized in the next meeting to be convened "very soon," Ankara has announced.

Turkey and Israel are close to signing an agreement on compensation for the killing of 10 Turkish activists by Israeli commandos in 2010, a Turkish ruling party official said on Feb. 15.

Turkish Customs and Trade Minister Bülent Tüfenkçi said Dec. 25 that if an agreement with Israel was reached after five years of tense relations, it would allow Turkish products to enter Gaza more easily. 

Answering questions at a news conference with members of the Economy Correspondents' Association, Tüfenkçi said Tel Aviv would allow Turkish products to enter Gaza.

U.S. State Department spokesman John Kirby welcomed Dec. 21 a potential agreement between Israel and Turkey to improve the tense relations which have been simmering for more than five years. 

"We've seen reports of a potential agreement between Israel and Turkey to restore diplomatic relations," said Kirby during a daily press briefing on Dec. 21.

Israel was led to pursue better relations with Turkey due to the overwhelming victory of the ruling Justice and Development Party (AKP) in the Nov. 1 elections, Prime Minister Ahmet Davuto?lu has said.

In an apparent bid to single out practices of the elected Israeli government which are disreputable for the Turkish government from the broad framework of the bilateral relationship with Israel, a senior executive of Turkey's ruling party has said the "friendly" nature of relations with both "the Israeli state and the Israeli people" were undisputable for Turkey.

An announcement by an Arab Israeli lawmaker that he plans to join a pro-Palestinian flotilla seeking to break Israel's blockade on Gaza caused outrage June 22 among the country's political class.