Palestinian unity pact upsets U.S.

The announcement of a unity pact between Islamist Hamas in Gaza and the Palestinian Liberation Organisation in West Bank has caused shock waves.

The deal after years of internal bickering is being welcomed by some, condemned by others.

Hamas is classed as a terrorist organisation by Israel, the United States, and the European Union.

The U.S. is warning it could severely complicate peace efforts with Israel.

(SOUNDBITE)(English) STATE DEPARTMENT SPOKESWOMAN JEN PSAKI SAYING:

"Any Palestinian government must unambiguously and explicitly commit to non-violence, recognition of the state of Israel, an acceptance to previous agreements and obligations between the parties. This announcement, the timing, was troubling and we were certainly disappointed in the announcement."

The Palestinian announcement led Israel to cancel a session of U.S. -brokered talks on Wednesday.

The talks, aimed at ending the decades-old conflict between Israel and the Palest