These developments have triggered a new confrontation between newly elected President Mohamed Morsy and the Egyptian army, which holds the political power.

Egypt’s political arena is rife with power struggles following its historic presidential election. Public opinion has been divided since President Morsy ordered the dissolved parliament to resume its legislative work on July 8.

While the Egyptian Supreme Court and the army insist that all decisions made by the court be respected, President Morsy holds that his order for parliament to resume is entirely constitutional. As a senior member of the Muslim Brotherhood, Morsy was certain to clash with Egypt’s powerful army generals.

On July 10, Egypt’s Supreme Court suspended Morsy’s Decree and declared that the court’s ruling that the parliamentary elections held seven months ago were unconstitutional and the parliament must be dissolved, must be enforced.

Earlier, the Supreme Council of the Armed Forces (SCAF), which handed over power to the Muslim Brotherhood President Mohamed Morsy last month, held an emergency meeting to discuss the President’s Decree.

The meeting was chaired by Field Marshal Hussein Tantawi, head of the SCAF, which has run the country since former President Hosni Mubarak was toppled last year. It pondered the impact of Morsy’s decision to reconvene Parliament.

Amid these complicated developments, US Secretary of State Hillary Clinton called on all parties to hold dialogues to resolve the crisis.

Under the Decree issued on July 8 by President Morsy, the parliament would resume its legislative activities until a new parliament is elected. Morsy’s spokesperson Yasser Ali said the President’s decree does not contradict the Supreme Court’s June ruling against the parliamentary elections law.

The Decree reverses SACF’s decision to dissolve the parliament under a ruling by the Supreme Court, that one-third of the parliamentary seats allotted for independents were unconstitutionally contested by candidates affiliated with parties.

Mohamed Morsy becoming Egypt’s new President has allowed the Muslim Brotherhood to hold power for the first time since it was founded 84 years ago. It has also led to a power struggle between the Muslim Brotherhood and the generals who have ruled Egypt for decades.

Observers say Morsy’s decree was intended to wrest power from the army and bolster his own control over the troubled country.