NEWS: Israel and Iran are engaged in a shadowy war of covert operations. Residents in one of Israel's southernmost communities were not far from the attack on Egyptian forces in Sinai, as militant forces are gaining strength there and Egypt moves to suppress them. Egypt asks Hamas to hand over three Hamas militants suspected of involvement in the attack. Officials say Egyptian-Israeli security cooperation is at a high point following the attack. Palestinians say Swiss experts have been invited to examine the body of the late Pres. Arafat to look for signs of poisoning, but the lab says it will only do that if it is guaranteed its findings won't be used for "political purposes." Shots are fired at the office of PM Fayyad in Ramallah. Fayyad condemns Israeli plans to evict 12 Palestinian shepherd communities to make way for military fire zones. The EU says it expects Israel to cancel all demolition orders in "Area C." Hamas objects to the idea of holding Palestinian elections before national reconciliation. Washington is reportedly continuing to pressure Palestinians to delay any renewed effort at greater UN recognition until after the upcoming US presidential election. COMMENTARY: Louis Frankentaler says torture need not be an integral part of Israel's occupation. Khaled Diab says Arab and Israeli women face common challenges. Sari Bashi says occupation, not culture, is holding back the Palestinian economy. Adel Al Toraifi says it's vital for Egypt's national interests that the country move quickly to restore order in Sinai. George Hishmeh says Israel is rapidly losing international support, especially in Europe. Gerard Horton says Palestinian children in Israeli detention must be treated justly. Abdallah Iskandar says the attack on Egyptian forces in Sinai is helping Israel clamp down on Palestinians.