On January 26, 2004, senior Hamas leader Abdel Aziz al-Rantissi offered a 10-year hudna [truce] in return for complete withdrawal from all territories captured in the Six Day War, and the establishment of a state. There had earlier been some talks within Hamas about doing this but this time, according to him, “the movement has taken a decision on this”. Hamas leader Sheikh Ahmed Yassin said recently the group could accept a Palestinian state in the West Bank and Gaza Strip. Rantissi stated that Hamas had come to the conclusion that it was “difficult to liberate all our land at this stage, so we accept a phased liberation.” Rantissi said the truce could last 10 years, though “not more than 10 years.” [2] (http://www.aljazeerah.info/News%20archives/2004%20News%20archives/Jan/27n/Hamas%20proposal%20of%2010year%20truce%20scorned.htm) (See Hudna)
On March 22, 2004, Sheikh Ahmed Yassin was assassinated in an Israeli missile strike. Following Yassin’s death, Abdel Aziz al-Rantissi replaced him as the leader of Hamas. On March 28, he stated in a speech given at the Islamic University of Gaza City that “America declared war against God. Sharon declared war against God, and God declared war against America, Bush and Sharon.”
On April 17, 2004, Rantissi was also killed in an airstrike by the Israel Defense Forces, five hours after a fatal suicide bombing by Hamas. With the death of Rantissi, the top three Hamas leaders in Gaza have been killed since August 2003. As a result, Khaled Mashaal, overall leader of Hamas, who is based in Syria, said Hamas should not disclose the name of its next leader in Gaza. [3] (http://www.nytimes.com/2004/04/18/international/middleeast/18MIDE.html)
On April 2, 2004, according to the Boston Globe, a United States federal judge in Providence, Rhode Island, found Hamas guilty in a civil lawsuit resulting from the 1996 murder of Yaron Ungar and Efrat Ungar in Israel. Hamas was ordered to pay the family of Yaron and Efrat Ungar $116 million. The court has not yet ruled regarding the liability of the Palestinian Authority and the PLO.
On April 18, 2004, Hamas secretly selected a new leader in the Gaza Strip fearing that he will be killed if his identity is known. (NYT) (http://www.nytimes.com/aponline/international/AP-Israel-Palestinians.html?hp)
As of late April 2004, it is believed that the new leader of Hamas in Gaza is Mahmoud A-Zahar, the second-in-command, Ismail Haniya, and third in authority is Sa’id A-Siyam. [4] (http://www.israelnn.com/news.php3?id=61435)
As of 2004, Israeli military and intelligence sources believed that the Hamas infrastructure in the West Bank and the Gaza Strip has been significantly weakened by targeted assassination and Israeli military operations that came in response to a number of very bloody suicide attacks in 2002 and 2003 (see below). Israeli sources have supported this assertion by noting that no prominent attacks have been carried out or claimed by West Bank based Hamas militants (whereas bombings by Fatah-linked Al-Aqsa Martyrs’ Brigades did occur), even though reputedly Hamas leadership had ordered an escalation of attacks, especially after the assassinations of Sheikh Ahmed Yassin and Abdel Aziz al-Rantissi. The West Bank has been placed under a significant level of Israeli military control during Operation Defensive Shield launched in April 2002 severely limiting the mobility and organization of the remaining Hamas members.
In the Gaza Strip, on the other hand, Hamas was generally seen as a major force, rivaling Yasser Arafat’s Fatah movement. Apparently, its social base in Gaza was very considerable.
In 2004 in a prelude to the planned Israeli withdrawal from the Gaza Strip, Israeli forces carried out a number of incursions in Gaza cities and refugees camps, seeking to draw out into the open and kill Hamas-affiliated gunmen who have often engaged Israeli soldiers in skirmishes. This was done, presumably, to make it harder for a weakened and bloodied Hamas to claim the withdrawal as their own hard-won victory. Awareness of high casualties during such incursions have led the Hamas leadership to call its activists to avoid putting themselves in the line of fire needlessly.
In September 2004 Israeli army chief Moshe Yaalon said that Israel would “deal with … those who support terrorism,” including those in “terror command posts in Damascus.” On September 26, 2004 a mid-level Hamas official Izz El-Deen Sheikh Khalil was assassinated by a car bomb in Damascus, Syria. Israeli government officials acknowledged responsibilty for the assassination. In a statement released in Gaza, Hamas threatened to target Israelis abroad in retaliation.[5] (http://olympics.reuters.com/newsArticle.jhtml?type=worldNews&storyID=6334113) [6] (http://www.boston.com/dailynews/270/world/Car_bomb_kills_Hamas_operative:.shtml)