The dramatic events of July 3, which saw the unseating of Egypt’s first and only democratically-elected government by a military coup stimulated by enormous popular demonstrations, has created a huge question mark as to the future governance of the Arab world’s largest and most important country. The ramifications and repercussions will be playing out for months and years, whatever steps are taken in the next days and weeks. However, two parties acutely affected by these events are watching with particular concern. Israel is assumed to have gained by Morsi’s deposition and Hamas to have lost. However, I suggest that the situation, insofar as it can be foreseen, has the potential to change the Israeli-Palestinian stalemate, and that it should be recognized as an opening for American diplomacy.