Middle East leaders are meeting in Egypt to show support for Palestinian President Mahmoud Abbas and his new Western-backed cabinet after the seizure of Gaza by Hamas.
Israel, Jordan and the Palestinians are attending the four-way summit hosted by Egypt.
Earlier today, Israel's Prime Minister, Ehud Olmert, ruled out talks with Hamas after the Islamist group released an audio tape of an Israeli soldier who was captured by its militants one year ago.
Yesterday, Israel approved the release of over $600m of Palestinian funds to the Palestinian leadership in the West Bank, withheld since Hamas won 2006 elections.
However, the Hamas leader Ismail Haniyeh has attacked Israel's decision to release frozen tax funds to the new Palestinian government as 'blackmail'.
Mr Haniyeh, sacked as Palestinian Prime Minister after Hamas took control of Gaza, said the money belonged to all Palestinians and described Israel's announcement as bribery and political extortion.
He also rejected the summit, saying only resistance would give Palestinians a state.
Meanwhile, the aid agency Oxfam has warned that more than one million people are facing a humanitarian crisis unless aid is allowed into Gaza immediately.
In an appeal timed to coincide with the summit in Egypt, the group said that the area's economy and infrastructure were facing collapse.
It said food supplies would run out in 'days' with fuel and other necessities now 'critically' low.
Oxfam Director Barbara Stocking accused the international community of closing its eyes to its humanitarian obligations and said that aid was being withheld as a political weapon.
