Extremist settlers continued to defy the building moratorium, and the Israeli military fears they may attack Palestinians. A confidential EU report accuses Israel of de facto annexation of occupied East Jerusalem. Martin Indyk suggests that ensuring Palestinian control over West Bank territories is essential. Israelis are divided on the prospect of a prisoner swap with Hamas, and the two sides have both rejected mediator's proposals. A militant group claims to have attacked Israeli occupation forces in Gaza, which is suffering under a fuel and power crisis. The UAE is donating $2.5 million to UNRWA after the agency announced a zero balance. Ziad AbuZayyad says PM Netanyahu has to prove he is interested in peace. Ha'aretz says that while Hamas is imposing strict religious social order in Gaza, it is also cracking down on violent extremist groups. Pres. Obama, like all his predecessors, declines to move the US embassy in Israel to Jerusalem. A bitter argument has erupted over the appointment of Israel's UN ambassador. Patrick Seale agrees with other recent Arab commentaries that the Palestinians should call Netanyahu's bluff and return to negotiations with a strong stance. The Jordan Times denounces as strategically foolish Hamas' declaration that the 1947 UN partition resolution is null and void.