Meanwhile, in January 1968, Nasser commenced the War of Attrition to reclaim territory captured by Israel, ordering attacks against Israeli positions east of the then-blockaded Suez Canal. In March, Nasser offered Yasser Arafat's Fatah movement arms and funds after their performance against Israeli forces in the Battle of Karameh that month. He also advised Arafat to think of peace with Israel and the establishment of a Palestinian state comprising the West Bank and the Gaza Strip. Nasser effectively ceded his leadership of the "Palestine issue" to Arafat.