Israel allows in 500 Gaza workers

By Barbara Plett
BBC correspondent in Jerusalem

Israel's tight restrictions have hurt the Gaza economy

Israel has allowed 500 Palestinian labourers in from the Gaza Strip for the first time in three months.

They had been barred from entering since Israel assassinated Hamas leader Sheikh Ahmed Yassin in March.

The Israeli army says current security assessments permit some Palestinian labourers to re-enter Israel.

But 500 will not make much difference to Gaza, where half of the labour force is unemployed and two-thirds of families live below the poverty line.

Before the Palestinian uprising, tens of thousands of Gazans earned their living in Israel.

But the decision to let some workers in shows Israel is feeling more confident that the threat of a Hamas attack has decreased.

The Islamic group had threatened massive retaliation after Israel assassinated its spiritual leader Sheikh Yassin - but Hamas has suffered a series of blows.

Israel has decapitated its political leadership in Gaza and much of its military leadership in the West Bank.

Hamas is also under pressure from Egypt and the Palestinian Authority to keep things quiet in order to facilitate Israel's promised withdrawal from the Gaza Strip.

Israel may be feeling a bit of diplomatic pressure of its own. The Americans have been urging it to ease up on harsh measures that are strangling the Palestinian economy.

Last week the army lifted several checkpoints in the West Bank.