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).