The Independent offers continued coverage of outgoing Prime Minister Ehud Olmert?s recent public acknowledgement that Israel will have to return to the 1967 borders in order to reach a peace deal (1). An autopsy of the Palestinian shepherd who was found dead near Nablus reveals that he was killed by shrapnel from a grenade (2). As the holy month of Ramadan draws to a close, Hamas and Fatah pledge to seek unity at upcoming meetings in Cairo (3), however Hamas has allegedly planned to name one if its own high officials as interim president when Mahmoud Abbas? term expires in January (7).

Outgoing Prime Minister Ehud Olmert says that Israel must pull out of nearly all of the West Bank and East Jerusalem if peace is to be achieved with the Palestinians (1). Ethan Bronner reports on how both Muslims and Jews are sharing their respective Holy Seasons in Jerusalem (2). An 18-year old Palestinian shepherd is shot dead near the West Bank city of Nablus (3). The Telegraph of London examines the network of underground smuggling tunnels that service the Gaza strip (4).

Palestinian president Mahmoud Abbas meets with President Bush in Washington (1). An Israeli academic and well known critic of Jewish settlement is injured in a bomb attack at his home (2). A group of aid agencies releases a report criticizing the Mid-East Quartet?s effectiveness (4). The Shin Bet issues findings linking the construction of the West Bank barrier with the recent attacks in Jerusalem (5). A group of Arab countries plan to request a meeting of the U.N. Security Council to discuss Israeli settlement activity (6).

Israeli prime minister designate-Tzipi Livni assures Palestinian negotiators that the peace talks will continue even while she is forming the new government (1). Five Palestinians are killed as Egyptian forces explode two smuggling tunnels on their border with Gaza (2). Fatah approves tentative plans to restructure the Palestinian government (3). Jordanian and Egyptian heads of state call for increased global assistance in the establishment of Palestinian state (4).

The Palestinian government receives pledges of almost $300 million in new aid (1). Yesterday?s incident in Jerusalem raises Israeli concerns over attacks in the city (2). The Angus Reid Global Monitor features a poll of Palestinian expectations for statehood (3), and an op-ed by Ali Jarbawi supports the results, calling for a new approach to state building (10). Israeli President Shimon Peres asks Kadima election winner Tzipi Livni to form a new government following Ehud Olmert?s resignation (7).

Ehud Olmert formally resigns as Israeli Prime Minister (1). Israeli President Shimon Peres is expected to ask Foreign Minister Tzipi Livni, winner of the recent Kadima party elections, to form a new coalition government (4). A commentary in The Times of London discusses the importance of Israel?s continued work towards a peace deal despite distractions (2). A Fatah official states that a military option against Hamas is a possibility (5), resulting in a strong reaction by Hamas leadership (9). Palestinian company PADICO announces a massive investment plan for the West Bank (6).

Palestinian President Mahmoud Abbas discusses the future of the peace process in an op-ed for the Wall Street Journal (1). A second battalion of Palestinian National Security Forces begin U.S. funding training in Jordan (2). A pair of articles discuss the challenges that face newly elected head of the ruling Kadima party Tzipi Livni (3) (5). A Palestinian candidate enters the race for mayor of Jerusalem (7). Haaretz examines the revitalization of the West Bank town of Jenin (8).

After claiming victory in yesterday?s Kadima party elections Tzipi Livni begins the task of assembling a new government (1) (2). The BBC offers a succinct summarization of the Israeli leadership change (3). Israeli and Egyptian negotiators meet in Cairo to discuss a Hamas prisoner exchange (6). The ongoing water shortage continues to challenge Palestinian farmers (7). The Israeli High Court intervenes to halt demolition of an illegal settler outpost in the West Bank (9).

Foreign Minister Tzipi Livni claims victory as the Kadima Party successor to Prime Minister Ehud Olmert (1). The World Bank warns that Israeli restrictions are severely hampering the growth of the Palestinian economy and leaving it largely dependent on foreign aid (2). An op-ed by Jonathon Freedland in The Guardian discusses the prospects for a future two-state solution (3). Israel lifts restrictions on the town of Nablus that had barred Israeli Arabs from shopping in the town (4). Jordan and Kuwait renew their support for the Palestinian Authority (7).

A new television series based in the West Bank provides a unique perspective on life under occupation (1). Ongoing turmoil surrounding Israeli Prime Minister Ehud Olmert dampens the peace effort (2), though some remain hopeful (4). The Muslim holiday of Ramadan begins while the Israeli blockade of Gaza continues (3). Egypt recloses its Gaza border after a brief opening allowed thousands to pass through (5). Al-Qaeda oriented groups train in the Gaza strip (6). Thousands of medical workers in Gaza go on strike in response to the Hamas-run health ministry?s recent spate of firings (8).