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Retired Israeli official Avner Cohen told the Wall Street Journal, “Hamas, to my great regret, is Israel’s creation.”

In an amazing story, the Wall Street Journal draws a direct line between Hamas and the State of Israel with complete history of the hows and whys of its creation.

Mr. Cohen, a Tunisian-born Jew who worked in Gaza for more than two decades. Responsible for religious affairs in the region until 1994, Mr. Cohen watched the Islamist movement take shape, muscle aside secular Palestinian rivals and then morph into what is today Hamas, a militant group that is sworn to Israel’s destruction.

Instead of trying to curb Gaza’s Islamists from the outset, says Mr. Cohen, Israel for years tolerated and, in some cases, encouraged them as a counterweight to the secular nationalists of the Palestine Liberation Organization and its dominant faction, Yasser Arafat’s Fatah. Israel cooperated with a crippled, half-blind cleric named Sheikh Ahmed Yassin, even as he was laying the foundations for what would become Hamas. Sheikh Yassin continues to inspire militants today; during the recent war in Gaza, Hamas fighters confronted Israeli troops with “Yassins,” primitive rocket-propelled grenades named in honor of the cleric.

The Palestinian cause was for decades led by the PLO, which Israel regarded as a terrorist outfit and sought to crush until the 1990s, when the PLO dropped its vow to destroy the Jewish state. The PLO’s Palestinian rival, Hamas, led by Islamist militants, refused to recognize Israel and vowed to continue “resistance.” Hamas now controls Gaza, a crowded, impoverished sliver of land on the Mediterranean from which Israel pulled out troops and settlers in 2005.

When Israel first encountered Islamists in Gaza in the 1970s and ’80s, they seemed focused on studying the Quran, not on confrontation with Israel. The Israeli government officially recognized a precursor to Hamas called Mujama Al-Islamiya, registering the group as a charity. It allowed Mujama members to set up an Islamic university and build mosques, clubs and schools. Crucially, Israel often stood aside when the Islamists and their secular left-wing Palestinian rivals battled, sometimes violently, for influence in both Gaza and the West Bank.

“When I look back at the chain of events I think we made a mistake,” says David Hacham, who worked in Gaza in the late 1980s and early ’90s as an Arab-affairs expert in the Israeli military. “But at the time nobody thought about the possible results.”

Israeli officials who served in Gaza disagree on how much their own actions may have contributed to the rise of Hamas. They blame the group’s recent ascent on outsiders, primarily Iran. This view is shared by the Israeli government. “Hamas in Gaza was built by Iran as a foundation for power, and is backed through funding, through training and through the provision of advanced weapons,” Mr. Olmert said last Saturday. Hamas has denied receiving military assistance from Iran.

This is a must read for anyone who wants to understand the Palestinian concerns and the reasons for them.