Secretary of State Hillary Clinton announces that the U.S. will not recognize a Palestinian government that includes Hamas until it meets three international conditions (1). A poll released today shows that a majority of both Palestinians and Israelis are willing to accept a two-state solution (2). President Obama invites leaders of Israel, Egypt, and Palestine to Washington for talks in early June (3). The Economist assesses the state of the U.S. – Israeli relationship under new administrations (4). The first Hamas-licensed bank opens in Gaza (8). Israel demolishes a house in Arab East Jerusalem (9). President Obama meets with Jordan’s King Abdullah and reaffirms his commitment to the two-state solution (14).