NEWS: An Israeli human rights group says armed settlers opened fire on Palestinian villagers in the full view of Israeli soldiers who did nothing to stop the attacks, as depicted clearly in video footage. PM Netanyahu again insists that Iran is determined to “destroy” Israel. The PA says Israel has already violated the prisoners' agreement brokered by Egypt. Israeli physicians describe African migrants as “a ticking illness bomb.” Israeli settlement expansion in Jerusalem is proceeding without respite. PM Fayyad says Israel's control of water resources in the occupied West Bank is the cause of a Palestinian water crisis. PM Netanyahu says it would be a “fatal mistake” to compromise over control of holy sites in occupied East Jerusalem. The Austrian FM criticizes his own DM for blunt statements about Israeli FM Lieberman. The Knesset passes a bill granting tax exemptions to donations to settlement activities. Rep. Howard Berman is making a surge in fundraising in his tightly-contested reelection campaign in California. An American Jewish Committee official decries both pro-Israeli right wing and pro-Palestinian left-wing one-state advocacy. Palestinian paralympians visit the al-Aqsa Mosque before the competition. European leaders are increasingly considering a settlements goods boycott. Released Palestinian prisoners struggle to make a new life in Gaza. COMMENTARY: ATFP expresses alarm at footage showing armed settlers opening fire on Palestinian villagers in the full view of Israeli soldiers. Gershon Baskin says it would not be that hard for Netanyahu and Pres. Abbas to reach a peace agreement if it were simultaneously their national priorities. Michael Kagan says Hussein Ibish is wrong that the search for creative alternatives to a two-state solution in finding a resolution to the Israeli-Palestinian conflict is quixotic.Kathleen Peratis says that, under present circumstances, peace efforts are concentrated on finding any formula that is “good enough” to avoid disaster. Jonathan Schanzer says a new bill in Congress might completely revise the American, if not UN, definition of who constitutes a Palestinian refugee. David Shulman says Israel is pursuing “suicidal” policies because it is driven by irrational fear. Robert Wright says the recent scandal involving armed settlers shooting at Palestinian villagers in the full view of Israeli soldiers demonstrates exactly what the role of occupation forces in the Palestinian territories really is.