In April 2005, Hezbollah leaders and the radical Palestinian faction Hamas signed a statement in support of militant activity against Israel.  The statement, signed in Lebanon by Hamas political chief Khaled Mishaal and Sayyed Hassan Nasrallah, the Secretary General of Hezbollah, warned that Hamas would resume terror attacks if Israel violated the cease-fire declared two months earlier.  Following the meeting, the two leaders attended a rally organized by Hamas in Beirut commemorating the first anniversary of the death of Sheikh Ahmad Yassin, Hamas' spiritual leader.  Speaking at the rally, Nasrallah dared the U.S. to forcibly disarm either group.  "We tell America and all those who want to disarm the resistance in Lebanon [Hezbollah] and the resistance in Palestine [Hamas], to safeguard Israel: This is forbidden.  It is not possible."

In the months following the signing of the statement, Hezbollah engaged in scores of attacks in Northern Israel, including firing Katyusha rockets into Israel and shelling Israel army positions. 

In addition to cross-border raids, Hezbollah has sent money, weapons, weapons technology and expertise to the territories and provided Palestinian terrorists with access to Hezbollah terrorist training camps in Iran and South Lebanon. The money is funneled to Palestinians through moneychangers, bank transfers and couriers coming in from abroad.  

Hezbollah was also involved in the failed effort to smuggle 50 tons of weapons to Palestinian terrorists aboard the Karine-A weapons ship, which was intercepted by Israeli authorities in January 2002.  The operation was reportedly overseen by senior Hezbollah operative Hajj Bassem. Following the Karine-A affair, Sayyed Hassan Nasrallah said, "transferring weapons to the Palestinians is one of [Hezbollah's] greatest and most important obligations."

The firing of hundreds of Katyusha rockets at Israeli cities and towns and the kidnapping of the Israeli soldiers by Hezbollah on July 12, 2006, followed the June 25 cross-border attack by Hamas in southern Israel, in which one soldier was kidnapped, two soldiers were killed and three wounded.