Hamas, the militant Islamic group committed to the destruction of Israel, has won a landslide victory in the Palestinian parliamentary elections.

The shock outcome, which prompted the resignation of Palestinian Prime Minister Ahmed Qurei and his cabinet, is likely to throw the Middle East peace process into turmoil.

Israel issued a statement late Thursday saying it will not negotiate with a Palestinian government that includes Hamas members.

"The state of Israel will not negotiate with a Palestinian administration if even part of it is an armed terrorist organization calling for the destruction of the state of Israel,'' acting Prime Minister Ehud Olmert said in the statement.

The outcome of the election is the biggest challenge facing Olmert since he took over from Israeli Prime Minister Ariel Sharon, who remains in a coma following a massive stroke on Jan. 4.

Results

According to preliminary results, Hamas won 76 seats whereas the ruling Fatah party garnered just 43, giving Hamas a significant majority in the 132-seat chamber. The voter turnout was 77.7 per cent.

Palestinian President Mahmoud Abbas, who has already accepted Qurei's resignation, will ask Hamas to form the next government. 

Abbas was elected president in a separate election last year, and is scheduled to serve a four-year term.

Meanwhile, a defeated Fatah Party has announced it will not join Hamas in government, leaving Abbas as the lone Fatah representative at the top of the government.

World reaction

The situation leaves the Bush administration, which vigorously backed democratic elections, facing a Palestinian government led by what it describes as a terrorist group.

At a news conference at the White House Thursday, President George Bush said the U.S. "will not deal with a Palestinian political party that articulates violence.

"I don't see how you can be a partner in peace if you advocate the destruction of a country," Bush told reporters.

"I've made it very clear that the U.S. does not support political parties that want to destroy our ally Israel."

However, the Secretary General of the Arab League, Amr Moussa, had his own warning for Bush.

"The U.S. can't promote democracy but then reject the results of this democracy." Moussa told reporters Thursday.

Meanwhile, prime minister-designate Stephen Harper suggested Canada will not recognize a Palestinian Hamas government either.

Asked about the issue during his first news conference since winning Monday's election, Harper said he supports Israel.

"For a nation to be truly democratic, that nation must renounce terrorism," he said.

And British Foreign Secretary Jack Straw also echoed Bush and Harper's views when he told reporters that "those who participate in democratic elections have to understand that democracy and violence are incompatible."

Next steps

Following Hamas' victory, several steps are likely to take place. Following are some of the possibilities:

• Results from the election will be finalized in about two weeks. In the meantime, participants may challenge results;
• After final results are in, Mahmoud Abbas, the president of the Palestinian Authority, begins consultations with factions that are to enter the next parliament, he will then ask a party to form government. That party will have three weeks to form a government and can ask for a two-week extension.
• In March, the new government will be sworn-in for a four year term.
• The Fatah party's Abbas, elected last year to a four-year term, has said he will only step down if his peace efforts with Israel are unsuccessful.

End of the peace process?

Reporting from Jerusalem, CTV's Janis Mackey Frayer said many believe the results "mark an end to the prospect of peace making" in the Middle East.

"Hamas has long claimed that it's committed to the obliteration of the Jewish state and has long rejected the idea of negotiation," she said Thursday.

"It seems like they (the Palestinians) were voting for an anti-corruption party against a Fatah party many associated with corruption," she added.

Violence

As the results began to emerge Thursday, Hamas and Fatah supporters clashed outside the Palestinian parliament building when Hamas supporters attempted to raise the green Hamas flag. Shots were fired in the air and some injuries were reported.

Initial exit polls on Wednesday night had forecast a slight edge for Fatah, with Hamas coming in a strong second.

A senior Fatah member, Saeb Erekat, blamed Israel's refusal to resume peace talks with a Fatah-led government for the party's poor showing.

"Israel has declared us non-partners about four years ago and they were not speaking to our elected president," he told Israel Army Radio Thursday.

"Everybody was blaming Fatah for every mistake in the world. Everybody was tying our hands and our legs and throwing us into the sea. And now I think all these things, including our mistakes in Fatah, led to this result."

First election in a decade

The election Wednesday was the Palestinians' first truly competitive vote, with Hamas contesting a parliamentary vote for the first time.

Hundreds of thousands of Palestinians flooded polling stations throughout the West Bank and Gaza Strip for a vote that would determine how Palestinians wanted to be governed and whether they would pursue negotiations or confrontation with Israel.

Long lines formed at polling stations as 77.7 per cent of 1.3 million eligible voters cast ballots.

Many international observers praised the election process, with Canadian monitoring team member Les Campbell describing it as "extremely well run."

"We characterize this election as very smooth and we certainly think it reflects the democratic will of Palestinians," Campbell told CTV News Thursday. "There was a real sense of civic duty and excitement."

Some 13,500 police officers guarded the 1,008 polling stations to prevent gunmen from disrupting the vote, and there were no reports of major violence during voting.