Complex sentence: Hamas hoped that the accord would lead Israel to suspend attacks on the West Bank and Gaza while Israel hoped that the accord would lead to progress on negotiations for the release of Gilad Shalit; neither hope was met.
Split into simpler sentences: Hamas hoped that the accord would lead Israel to suspend attacks on the West Bank and Gaza. Israel in turn hoped that the accord would lead to progress on negotiations for the release of Gilad Shalit; neither hope was met.