The Egyptian Court of Cassation on July 2 ordered President Mohammed Morsi to reinstate Abdel Meguid Mahmoud to his post as prosecutor-general (PG). Morsi appointed Talaat Abdallah as PG in November, pursuant to a controversial constitutional declaration which dismissed and replaced the Mubarak-era PG Mahmoud and immunized Morsi's own decisions from judicial appeal. The Cairo Court of Appeals overturned Mahmoud's dismissal in March based on a constitutional provision which established that the PG post comes with a four-year term and is not subject to presidential dismissal. Abdallah has not left office despite requests from Egypt's Supreme Judicial Council that he resign and return to his former position as a judge. Abdallah has been criticized by the liberal opposition for targeting critics of Morsi, the Muslim Brotherhood, and independent media, including the popular television satirist Bassem Youssef who was recently arrested for allegedly insulting Islam and Morsi. Mahmoud pledged to protect the rights of the people after the ruling.

Street clashes between supporters and opponents of President Mohamed Morsi shook Egypt's port of Alexandria June 28, in a day of rival protests nationwide that left two dead—including a US citizen who was photographing. Several Muslim Brotherhood offices were ransacked and some torched across the country, including the offices in Alexandria and the Nile Delta governorates of Beheira, Gharbiya, Daqahilyah and Kafr Al-Sheikh. The Brotherhood released a statement holding members of the anti-Morsi Tamarod ("Rebel") campaign responsible for the violence, slamming them as "thugs." Cairo's Tahrir Square was again occupied, as thousands marched on the iconic plaza to demand Morsi's ouster. 

The Islamic Jihad movement in Gaza announced June 23 that it was temporarily suspending ties with Hamas, accusing Gaza authorities of being responsible for the death of one of the group's members. Raed Qassim Jundeyeih, a member of Islamic Jihad's militant wing, the al-Quds Brigades, died after being shot a day earlier by Hamas police officers. Police had gone to an address in Gaza City June 22 to deliver summons orders to a member of the Jundeyeih family. Upon approaching the home, members of the family opened fire at the officers and Jundeyeih was wounded in the ensuing gunfight.

Egypt has declared a state of alert in the Sinai after extremist Islamist fighters set up a military base in the peninsula, Egyptian security officials said June 17.  Egyptian forces and police have imposed curfews on Sinai cities el-Arish, Sheikh Zuweid and Rafah. Military helicopters were seen hovering over the cities, a Ma'an News Agency reporter said.  Militants from Egypt, Palestine and Mali affiliated to jihadist groups and al-Qaeda have deployed heavily in bunkers in a desert area in central Sinai, Egyptian security officials told Ma'an. 

Egypt's foreign minister Mohamed Kamel Amr, vowing not to give up "a single drop of water from the Nile," said June 16 he will go to Addis Ababa to discuss a giant dam that Ethiopia has started building in defiance of Cairo's objections. "No Nile—no Egypt," he said at a press conference. Last week, Ethiopia summoned the Egyptian ambassador after politicians in Cairo were shown on TV calling for military action or supporting Ethiopian rebels. Ethiopia says the $4.7 billion Great Ethiopian Renaissance Dam on the Blue Nile will eventually provide 6,000 megawatts of power. Egypt was apparently caught by surprise when Ethiopia started diverting the Blue Nile to begin construction last month.

An Egyptian court on June 4 convicted 43 foreign and domestic non-governmental organization (NGO) employees of engaging political activity without proper documentation and of receiving funds from abroad in violation of Egyptian law. Those convicted include Europeans, Egyptians, other Arabs and at least 16 Americans, 15 of whom were convicted in absentia. The court ordered closure of the NGOs after meting out fines and prison sentences to employees ranging from one to five years. Affected NGOs include the US-based International Republican Institute (IRI), National Democratic Institute (NDI), Freedom House (FH), the International Center for Journalists and the Konrad Adenauer Foundation.

Egyptian police arrested 12 "Black Bloc" protesters in clashes outside Cairo's presidential palace April 27. Protesters hurled rocks and fire bombs at the walls of the presidential palace in the Heliopolis suburb, and torched a police vehicle. The clashes come days after the detainment of 22 suspected Black Bloc members on court order. On May 1, a court refused an appeal to release the young men, who have been ordered to remain in custody for a second 15-day period. On their Facebook page, the Blac Bloc say they are a "generation born of the blood of the martyrs" from the 2011 revolution that toppled Hosni Mubarak. Prosecutor general Talaat Abdallah has accused the group of "terrorism." 

Italian president Giorgio Napolitano on April 5 pardoned US Air Force Colonel Joseph Romano of his conviction related to the US Central Intelligence Agency's abduction and "extraordinary rendition" of Egyptian cleric and terror suspect Osama Moustafa Hassan Nasr AKA Abu Omar. Joseph Romano was security chief of northern Italy's Aviano air base where Nasr was abducted prior to being flown to Egypt. Nasr was seized on the streets of Milan in 2003 by CIA agents with the help of Italian operatives, then allegedly transferred to Egypt and tortured by Egypt's State Security Intelligence before being released in February 2007. The US Department of Defense welcomed the news of Napolitano's pardon.