By Mark Heinrich LONDON (Reuters) - When Israel ended its 38-year occupation of the Gaza Strip by withdrawing settlers in 2005, then-Prime Minister Ariel Sharon hailed it as a "disengagement" from conflict with Palestinians in the densely populated coastal enclave. Israel kept expanding settlements in the West Bank where the Palestinians also seek a state. Hardline Islamists seized control of Gaza in 2007 and periodic U.S. efforts to broker a permanent peace between Israel and the Palestinian Authority under secular President Mahmoud Abbas have proved fruitless. Israel sealed Gaza in an eco**mically choking blockade and the territory's ruling Hamas movement and other militant factions fired rockets with increasing frequency and range, though **t accuracy, into the Jewish state.