After Mohammad al-Morsi won the election to be Egypt's first elected ruler in a real election, Egyptian military Supreme Council of the Armed Forces (SCAF) carried out a coup by stripping him of power by essentially making the presidency a figurehead in a military government equivalent to the queen of England. This week al-Morsi pushed back by sacking the defense minister, Field Marshal Mohammed Hussein al-Tantawi, and the Egyptian chief of staff, General Sami Annan. He replaced them with his own candidates. Here is a link to an article from The Daily Beast on the latest power struggle.
It may be quite some time before it is clear who holds real power in Cairo. After all, following the July 1952 Free Officers coup in Egypt it took two years before Colonel Gamel Abdul Nasser emerged from behind the curtains to take real power from a general who was a hero of the 1948 Israeli War of Independence or an Nakba (the catastrophe) as the Arabs referred to it. Don't expect any Israeli government to make any peace moves on any track until it is clear how things stand in Egypt.