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(Reuters) - Egypt has intensified a crackdown on smuggling tunnels between its volatile Sinai desert and the Gaza Strip, causing a steep hike in petrol and cement prices in the Palestinian territory.
Palestinians involved in the tunnel business say that the campaign, which began in March and has included flooding of underground passages, was ramped up in the past two weeks before a wave of opposition-led protests in Egypt expected to start on June 30.
Egyptian President Mohamed Mursi has come under political fire at home over a strong challenge to his authority by militant Islamists in the Sinai who have attacked Egyptian security forces in the peninsula.
Egypt's military, struggling to fill a security vacuum in the Sinai since autocrat Hosni Mubarak was swept from power in 2011, has pledged to shut all tunnels under the Gaza border, saying they are used by militants on both sides to smuggle activists and weapons.
The moves against the tunnels have dashed the hopes of many Palestinians that Mursi, a member of the Muslim Brotherhood from which Hamas was born, would significantly ease Egyptian border restrictions on Gaza, which is also subjected to blockade by Israel.
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