Israel implemented a series of punitive measures, including economic sanctions, against the Palestinian Authority following the election. Acting Prime Minister Ehud Olmert, announced that Israel would not transfer to the Palestinian Authority an estimated $50 million per month in tax receipts that were collected by Israel on behalf of the Palestinian Authority. Haniyeh dismissed the sanctions, stating that Hamas would neither disarm nor would it recognize Israel.
Haniyeh expressed regret that Hamas was subjected to punitive measures, adding that “it [Israel] should have responded differently to the democracy expressed by the Palestinian people”.