Israeli troops finish retreating from the Gaza Strip after occupying it, giving the area to the Palestine to govern.

The Palestinian National Authority (PA or PNA; Arabic: as-Sula al-Waanya al-Filasnya), commonly known as the Palestinian Authority and officially the State of Palestine, is the Fatah-controlled government body that exercises partial civil control over West Bank areas "A" and "B" as a consequence of the 19931995 Oslo Accords. The Palestinian Authority controlled the Gaza Strip prior to the Palestinian elections of 2006 and the subsequent Gaza conflict between the Fatah and Hamas parties, when it lost control to Hamas; the PA continues to claim the Gaza Strip, although Hamas exercises de facto control. Since January 2013, the Palestinian Authority has used the name "State of Palestine" on official documents, although the United Nations continues to recognize the Palestinian Liberation Organization (PLO) as the "representative of the Palestinian people".The Palestinian Authority was formed in 1994, pursuant to the GazaJericho Agreement between the PLO and the government of Israel, and was intended to be a five-year interim body. Further negotiations were then meant to take place between the two parties regarding its final status. According to the Oslo Accords, the Palestinian Authority was designated to have exclusive control over both security-related and civilian issues in Palestinian urban areas (referred to as "Area A") and only civilian control over Palestinian rural areas ("Area B"). The remainder of the territories, including Israeli settlements, the Jordan Valley region and bypass roads between Palestinian communities, were to remain under Israeli control ("Area C"). East Jerusalem was excluded from the Accords. Negotiations with several Israeli governments had resulted in the Authority gaining further control of some areas, but control was then lost in some areas when the Israel Defense Forces (IDF) retook several strategic positions during the Second ("Al-Aqsa") Intifada. In 2005, after the Second Intifada, Israel withdrew unilaterally from its settlements in the Gaza Strip, thereby expanding Palestinian Authority control to the entire strip while Israel continued to control the crossing points, airspace, and the waters of the Gaza Strip's coast.In the Palestinian legislative elections on 25 January 2006, Hamas emerged victorious and nominated Ismail Haniyeh as the Authority's Prime Minister. However, the national unity Palestinian government effectively collapsed, when a violent conflict between Hamas and Fatah erupted, mainly in the Gaza Strip. After the Gaza Strip was taken over by Hamas on 14 June 2007, the Authority's Chairman Mahmoud Abbas dismissed the Hamas-led unity government and appointed Salam Fayyad as Prime Minister, dismissing Haniyeh. The move wasn't recognized by Hamas, thus resulting in two separate administrations the Fatah-led Palestinian Authority in the West Bank and a rival Hamas government in the Gaza Strip. The reconciliation process to unite the Palestinian governments achieved some progress over the years, but had failed to produce a re-unification.

The Palestinian Authority received financial assistance from the European Union and the United States (approximately US$1 billion combined in 2005). All direct aid was suspended on 7 April 2006, as a result of the Hamas victory in parliamentary elections. Shortly thereafter, aid payments resumed, but were channeled directly to the offices of Mahmoud Abbas in the West Bank. Since 9 January 2009, when Mahmoud Abbas' term as president was supposed to have ended and elections were to have been called, Hamas supporters and many in the Gaza Strip have withdrawn recognition for his presidency and instead consider Aziz Dweik, the speaker of the Palestinian Legislative Council, to be the acting president until new elections can be held.The State of Palestine has become recognized by 138 nations and since November 2012, the United Nations voted to recognize the State of Palestine as a non-member UN observer state. The Palestinian Authority is an authoritarian regime that has not held elections in over 15 years; it has been criticized for human rights abuses, including cracking down on journalists, human rights activists, and dissent against its rule.

The Gaza Strip (; Arabic: قِطَاعُ غَزَّةَ Qiṭāʿu Ġazzah [qi.tˤaːʕ ɣaz.zah]), or simply Gaza, is a Palestinian enclave on the eastern coast of the Mediterranean Sea. It borders Egypt on the southwest for 11 kilometers (6.8 mi) and Israel on the east and north along a 51 km (32 mi) border. The Gaza Strip and the West Bank are claimed by the de jure sovereign State of Palestine.

The territories of Gaza and the West Bank are separated from each other by Israeli territory. Both fell under the jurisdiction of the Palestinian Authority, but the Strip has, since the Battle of Gaza in June 2007, been governed by Hamas, a militant, Palestinian, fundamentalist Islamic organization, which came to power in the last-held elections in 2006. It has been placed under an Israeli and US-led international economic and political boycott from that time onwards.The territory is 41 kilometers (25 mi) long, from 6 to 12 kilometers (3.7 to 7.5 mi) wide, and has a total area of 365 square kilometers (141 sq mi). With around 1.85 million Palestinians on some 362 square kilometers, Gaza, if considered a top-level political unit, ranks as the 3rd most densely populated in the world. An extensive Israeli buffer zone within the Strip renders much land off-limits to Gaza's Palestinians. Gaza has an annual population growth rate of 2.91% (2014 est.), the 13th highest in the world, and is often referred to as overcrowded. The population is expected to increase to 2.1 million in 2020. In 2012, the United Nations Country Team (UNCT) in the occupied Palestinian territory warned that the Gaza Strip might not be a "liveable place" by 2020; as of 2020, Gaza had suffered shortages of water, medicine and power, a situation exacerbated by the coronavirus crisis. According to Al Jazeera, "19 human rights groups urged Israel to lift its siege on Gaza". The UN has also urged the lifting of the blockade, while a report by UNCTAD, prepared for the UN General Assembly and released on 25 November 2020, said that Gaza's economy was on the verge of collapse and that it was essential to lift the blockade. Due to the Israeli and Egyptian border closures and the Israeli sea and air blockade, the population is not free to leave or enter the Gaza Strip, nor is it allowed to freely import or export goods. Sunni Muslims make up the predominant part of the population in the Gaza Strip.

Despite the 2005 Israeli disengagement from Gaza, the United Nations, international human rights organisations, and the majority of governments and legal commentators consider the territory to be still occupied by Israel, supported by additional restrictions placed on Gaza by Egypt. Israel maintains direct external control over Gaza and indirect control over life within Gaza: it controls Gaza's air and maritime space, as well as six of Gaza's seven land crossings. It reserves the right to enter Gaza at will with its military and maintains a no-go buffer zone within the Gaza territory. Gaza is dependent on Israel for water, electricity, telecommunications, and other utilities. The system of control imposed by Israel was described by Jerome Slater in the Fall 2012 edition of International Security as an "indirect occupation". Some Israeli analysts have disputed the idea that Israel still occupies Gaza, and have depicted the territory as a de facto independent state.

When Hamas won a majority in the 2006 Palestinian legislative election, the opposing political party, Fatah, refused to join the proposed coalition, until a short-lived unity government agreement was brokered by Saudi Arabia. When this collapsed under pressure from Israel and the United States, the Palestinian Authority instituted a non-Hamas government in the West Bank while Hamas formed a government on its own in Gaza. Further economic sanctions were imposed by Israel and the European Quartet against Hamas. A brief civil war between the two Palestinian groups had broken out in Gaza when, apparently under a US-backed plan, Fatah contested Hamas's administration. Hamas emerged the victor and expelled Fatah-allied officials and members of the PA's security apparatus from the strip, and has remained the sole governing power in Gaza since that date.