President Obama welcomes Israeli Prime Minister Netanyahu's acceptance of the goal of establishing a Palestinian state (1), while the reception across the Middle East is much cooler (8) (9) (13). Israeli officials are allegedly negotiating with Washington on the terms of a settlement freeze (4) (11), as the European Union defers an upgrade of trade relations with Israel, pending a full settlement freeze (2). President Obama strengthens his call for an end to the two year-long Israeli blockade of Gaza (5). A poll of U.S. voters shows a decline in overall support for Israel (7).