The International Criminal Court prosecutor says her office will open a formal investigation into war crimes in the Palestinian Territories which will examine both sides in the conflict.
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The decision comes after the court ruled on February 5 that it has jurisdiction in the case, prompting swift rejection from the US and Israel.
The Palestinian Authority welcomed the ruling.
"The decision to open an investigation followed a painstaking preliminary examination undertaken by my office that lasted close to five years," outgoing prosecutor Fatou Bensouda said in a statement.
"In the end, our central concern must be for the victims of crimes, both Palestinian and Israeli, arising from the long cycle of violence and insecurity that has caused deep suffering and despair on all sides," Bensouda said.
"My office will take the same principled, non-partisan, approach that it has adopted in all situations over which its jurisdiction is seized."
Bensouda, who will be replaced by British prosecutor Karim Khan on June 16, said in December 2019 that "war crimes have been or are being committed in the West Bank, including East Jerusalem, and the Gaza Strip".
She named both the Israeli Defense Forces and armed Palestinian groups such as Hamas as possible perpetrators.
The next step will be to determine whether Israel or Palestinian authorities have investigations themselves and to assess those efforts.
There was no immediate comment from Israeli Prime Minister Benjamin Netanyahu.
When the court ruled on jurisdiction, he said: "When the ICC investigates Israel for fake war crimes, this is pure anti-semitism".
The Palestinian Authority welcomed the prosecutor's investigation.
It is "a long-awaited step that serves Palestine's tireless pursuit of justice and accountability, which are indispensable pillars of the peace the Palestinian people seek and deserve," the PA foreign ministry said in a statement.
The Islamist militant group Hamas defended its own actions in the conflict.
"We welcome the ICC decision to investigate Israeli occupation war crimes against our people. It is a step forward on the path of achieving justice," Hazem Qassem, a Hamas spokesman in Gaza, told Reuters.
Balkees Jarrah, associate international justice director at Human Rights Watch, said "ICC member countries should stand ready to fiercely protect the court's work from any political pressure".
The ICC is a court of last resort established to prosecute war crimes, crimes against humanity and genocide when a country is unable or unwilling to do so.
Australian Associated Press
