Hamas is establishing a complicated, Hezbollah like system of bunkers in preparation for an all-out war with the IDF. It will include fortified areas for storing and launching rockets as well as outposts for increased surveillance of IDF movement and tactics:

Tamir said that Hamas was "building an army" in the Gaza Strip and had obtained unprecedented capabilities through smuggling tunnels between Gaza and Egypt. On Monday, head of the Shin Bet (Israel Security Agency) Yuval Diskin said that since Israel's withdrawal from Gaza in 2005, the Palestinians have smuggled over 112 tons of explosives into the Strip. "They are trying to dig tunnels, build surveillance positions and mortar-fire stations along the fence," Tamir told reporters during a briefing concerning the death of IDF reservist Ehud Efrati during clashes with Hamas gunmen early Monday morning. "They are trying to build this up and we are trying to stop them."

They managed to kill another Israeli soldier today in a kind of drip drip drip that's becoming disturbingly familiar.

Meanwhile, Israel has suspended the decision to cut fuel to the Gaza Strip. Because Hamas needs those resources to continue killing Israeli soldiers and creating their bunker system in preparation for an all-out war. They also need plenty of time to get the system built. Luckily, Annapolis isn't for another month and Olmert can't do anything to endanger the spectacular failure that the conference will be.

References:
* 'Hamas establishing bunker system along Gaza fence' [JPost]
* Soldier killed, 1 seriously hurt in Gaza [JPost]
* Mazuz freezes plan to cut Gaza power [JPost]

Previously:
* Gilad Shalit Is Alive, Forced To Say That Hamas Is Letting Him Die (Updated: Shas Leader Calls For Direct Prisoner Talks With Hamas)
* Hamas Smuggles Katyushas Into Gaza, Fires Them At Israeli Schools And Hospitals (Plus: Eight Mortars Fired At Israeli Civilians, One Scores Direct Hit)
* Hamas Has 200 Tons Of Explosives That The US Gave To Fatah (Plus: Egypt Says It's Israel's Fault)