May 2 – Hamas and Islamic Jihad launch at least 18 rockets into Israel, damaging a road, hitting a car in a commercial center of Sderot, killing an Israeli woman and lightly wounding 2 others.
May 21 – A man is killed in Sderot after a rocket landed near the car in which he was sitting.
June 7 – 15 – Battle of Gaza: Hamas takes control of the entire Gaza Strip after numerous gun battles, and establishes a separate government while Fatah remains in control of the West Bank. This in practice divides the area administered by the Palestinian Authority into two. President Mahmoud Abbas and the more moderate Fatah party advocate a Palestinian Arab state alongside Israel, while Prime Minister Ismail Haniya and the Islamist Hamas party reject Israel's right to exist.
November 27 – The Annapolis Conference is held in Annapolis, the capital of the US state of Maryland. The conference marks the first time a two-state solution is articulated as the mutually agreed-upon outline for addressing the Israeli–Palestinian conflict. The conference ends with the issuing of a joint statement from all parties.