( CNN ) -- A Palestinian radical group believed to be responsible for a series of abductions and attacks has been labeled a foreign terrorist organization by the United States . Known as the Army of Islam , the group `` has been responsible for numerous terrorist acts against the governments of Israel and Egypt , as well as American , British and New Zealander citizens , '' the State Department said . `` These actions include a number of rocket attacks on Israel , the 2006 kidnapping of two Fox News journalists in Gaza ( an American and a New Zealander ) and the 2007 kidnapping of a British citizen , journalist Alan Johnston , in Gaza . The group is also responsible for early 2009 attacks on Egyptian civilians in Cairo and Heliopolis , which resulted in casualties and deaths , '' the State Department said . While the statement does n't make reference to the abduction five years ago of Israeli soldier Gilad Shalit , Palestinian security sources have said the group was involved in Shalit 's capture , along with Hamas and another entity . Secretary of State Hillary Clinton issued the designation on Thursday . It is the latest of many such moves against militant groups over the years . The designation would result in a prohibition against Americans `` providing material support or resources '' to the group . It also includes the `` freezing of all property and interests in property of the organization that are in the United States , or come within the United States , or the control of U.S . persons . '' The group is led by Mumtaz Dughmush and `` operates primarily in the Gaza Strip and Palestinian territories , '' the State Department said . The International Crisis Group said Dughmush is a former member of the Palestinian Authority 's `` Preventive Security Organization who for years allegedly had been contracted for militant operations by both Hamas and Fatah . '' Hamas runs the Palestinian territory of Gaza and the Palestinian Authority , which is dominated by the Fatah group , is in charge of the West Bank , the other Palestinian region . Both groups , which have been adversaries for years , are working to reconcile their movements . Hamas opposes the existence of Israel but Fatah is not as hard-line and has been involved in peace talks with Israel . The State Department says the Army of Islam `` subscribes to a Salafist ideology of global jihad together with the traditional model of armed Palestinian resistance . AOI has previously worked with Hamas and is attempting to develop closer al Qaeda contacts . On May 7 the group released a eulogy for Osama bin Laden via its Al Nur Media Foundation , '' `` Salafis are Sunni Muslims who adhere to a literalist reading of scripture , '' according to an International Crisis Group report in March called `` Radical Islam in Gaza . '' The Army of Islam 's designation comes after President Barack Obama delivered a speech on Thursday detailing his Middle East policy , which includes attempts to reinvigorate the Israeli-Palestinian peace process . In the speech , Obama said the pre-1967 borders of Israel should serve as the basis for negotiations in the formation of a future Palestinian state . He said there could be `` mutually agreed swaps , so that secure and recognized borders are established for both states . '' Obama will meet with Israeli Prime Minister Benjamin Netanyahu on Friday at the White House in a session that could highlight the tensions between the allies . CNN 's Joe Sterling contributed to this report .
The group , based in the Palestinian territories , is called the Army of Islam . It is accused of deadly attacks and abductions of journalists . Palestinian sources have said it was involved in Gilad Shalit 's abduction .