Israel vows to intercept the Gaza flotilla. Jacob Dayan insists Israel is a democracy. Israel's entry into the OECD is shrouded in controversy over occupation statistics. Pres. Obama and Pres. Abbas will meet on June 9 to discuss negotiations, state building. In response to PM Netanyahu, Abbas says direct negotiations should begin after borders have been agreed. Hamas dismisses the latest Amnesty International report as "a joke." Details of the Gaza blockade baffle observers. The PA establishes a $50 million fund to help Palestinian settlement laborers find alternative work. The Israeli military issues new rules of engagement. Over 100 Palestinian children report abusive treatment by Israeli soldiers in 2009. Yossi Sarid says Israel is better at boycotting than the Palestinians. PM Fayyad hands out boycott leaflets in the West Bank. The new National Security Strategy document affirms the US interest in Palestinian statehood. Israel establishes a mechanism to "compensate" settlers for the partial moratorium. An extremist rabbi bans women from settlement elections. Aluf Benn calls for an interim agreement based on provisional Palestinian statehood.

Both PM Netanyahu and Pres. Abbas will visit the White House in coming weeks. A new movie follows the fortunes of a Palestinian soccer team in Israel. White House Chief of Staff Rahm Emanuel is denounced as an "anti-Semite" by Israeli extremists. Daoud Kuttab says upcoming municipal elections should strengthen the hand of the PA. A Fatah leader says Pres. Obama is preparing to put pressure on Israel. Construction materials continue to enter Gaza. Hamas faces challenges from more extreme groups. Gaza flotilla activists say they are determined. Two Palestinian citizens of Israel are indicted on charges of spying for Hezbollah, and at least one claims to have been tortured. Amnesty International says the US and Europe are shielding Israel for Gaza war crimes. An Israeli judge demands an explanation for why authorities are continuing to build a road in the occupied West Bank in defiance of a court order. Occupation authorities uproot 500 trees. The Knesset Speaker describes the PA settlement goods boycott as "an act of war." Larry Derfner mocks Israeli government claims about living conditions in Gaza. Ahdaf Soueif profiles provocative archaeology in occupied East Jerusalem. Nathan Guttman looks at White House outreach to Jewish Americans.

Yariv Oppenheimer says Palestinians are right not to continue to subsidize settlements. 15 Palestinians are injured in Israeli air raids on Gaza. A UN official says a two state solution is urgently required. Israel will allow hundreds of Arab businesspersons to attend the second investment conference in Bethlehem. Israel continues to impede Palestinian access to Highway 443. Aid agencies urge Israel to ease restrictions on Gaza. PM Netanyahu will visit the White House next week. Lt. Gen. Dayton is stepping down as special security coordinator in the fall. An Israeli extremist is banned from certain parts of Jerusalem and the West Bank. Pres. Abbas says Iran has hijacked the Palestinian cause, calls the second intifada a big mistake and says peace could be achieved in a week. Palestinian officials dismiss Israeli threats of retaliation for the boycott. Ira Lee explains why he's joining the Gaza flotilla. Ghassan Khatib says the purpose of the settlement goods boycott is to draw the distinction between Israel and the occupation. Yossi Alpher says it is an understandable but ill-timed measure.

Special Envoy Mitchell says the US may set a deadline for negotiations. Hamas and Islamic Jihad will boycott upcoming municipal elections. Lebanese PM Hariri says Middle East peace is a global concern. The Christian Science Monitor looks at allegations that Israel discussed selling nuclear weapons to apartheid-era South Africa. Pres. Abbas defends the settlement goods boycott, as Israeli leaders threatened sanctions. Israeli police recommend indicting FM Lieberman. Hamas arrests extremists suspected of torching a UN summer camp, and confronts several dilemmas. UNSG Ban calls for Israeli restraint in Jerusalem. An Israeli court confirms orders to evacuate a Jerusalem settlement project. Yoel Marcus says it's not too late for Israel to make peace. Eldad Yaniv says Zionists are not racists or settlers. An Israeli border guard is indicted for killing an 11-year-old Palestinian child. A prominent Palestinian citizen of Israel may be indicted next week on charges of spying for Hezbollah. Gershon Baskin says international peacekeepers are needed between Israel and Palestinians. Neve Gordon profiles an Israeli protester against the occupation preparing to go to prison. Israel prepares to impose harsh new measures on Hamas prisoners.

Special Envoy Mitchell says the US may set a deadline for negotiations. Hamas and Islamic Jihad will boycott upcoming municipal elections. Lebanese PM Hariri says Middle East peace is a global concern. The Christian Science Monitor looks at allegations that Israel discussed selling nuclear weapons to apartheid-era South Africa. Pres. Abbas defends the settlement goods boycott, as Israeli leaders threatened sanctions. Israeli police recommend indicting FM Lieberman. Hamas arrests extremists suspected of torching a UN summer camp, and confronts several dilemmas. UNSG Ban calls for Israeli restraint in Jerusalem. An Israeli court confirms orders to evacuate a Jerusalem settlement project. Yoel Marcus says it's not too late for Israel to make peace. Eldad Yaniv says Zionists are not racists or settlers. An Israeli border guard is indicted for killing an 11-year-old Palestinian child. A prominent Palestinian citizen of Israel may be indicted next week on charges of spying for Hezbollah. Gershon Baskin says international peacekeepers are needed between Israel and Palestinians. Neve Gordon profiles an Israeli protester against the occupation preparing to go to prison. Israel prepares to impose harsh new measures on Hamas prisoners.

Israel launches a major civil defense exercise. The LA Times interviews Palestinian MK Tibi. The Wall Street Journal interviews Israeli Pres. Peres. Hamas' financial crisis worsens. Edward Djerejian says borders are the key to peace. Israel says it will ease West Bank checkpoints. Australia expels an Israeli diplomat over the Dubai assassination. Italian grocery chains ban settlement goods. Gaza extremists torch a UN children's camp. Israeli and Palestinian negotiators agree to the principle, but not the scope, of a land swap. Palestinian nonviolent protesters are injured by the Israeli military. Ha'aretz highlights Palestinian villagers trapped by Israeli restrictions. Israel denies offering nuclear weapons to apartheid-era South Africa. Israel is retroactively "authorizing" both Palestinian and settler buildings. Hamas claims to have captured an Egyptian "spy." The PA promises to find alternative employment for Palestinian settlement workers. Hussein Shobokshi accuses Israel of preparing a mass expulsion of Palestinians in a coming conflict. ATFP presents a set of resources illustrating US support for a two state solution and its centrality to the American national interest.

Palestinians have reportedly opened proximity talks with a surprisingly generous offer on borders. Israel is blocking official mail between the West Bank and Gaza. PA boycott volunteers say the Israeli army is searching for them. Israel says it is determined to break the boycott. Settlers in occupied East Jerusalem denounce negotiations. Experts say water may not prove a difficult issue. Palestinians accuse Israel of going ahead with planned home demolitions. Palestinian officials deny they are secretly negotiating with NATO. Shaul Mishal and Doron Mazza say Israel should propose a Palestinian state with provisional borders. Israel bombs three Gaza tunnels. The Economist profiles Palestinian state building efforts and Israeli extremists protest against the project. The Jerusalem Post says negotiations are off to a rocky start. Jonathan Power says Israel's policies are self-defeating.

Lanny Davis says peace should be based on Israelis and Palestinians coming together. Pres. Obama tells Jewish members of Congress he will not seek to impose a US plan.A new website explores obstacles to peace. Sasha Polakow-Suransky looks at "alternatives" to a two state agreement. Ma'an interviews a Salafist-Jihadist militant from Gaza. The US donates $1.4 million to UNRWA. Palestinians register formal complaints with the US about Israeli actions. Hamas arrests a senior Fatah leader in Gaza. Palestinians say settler efforts to break their boycott will fail. Reports are growing of family sexual abuse in Gaza. Israel expects the Palestinians to increase diplomatic pressure on settlements in spite of negotiations. Gideon Levy says Israel is starting to resemble North Korea. Israeli extremists rally in support of insubordinate troops. George Hishmeh says Arab funding is needed to counter Israeli propaganda. Daoud Kuttab explains the difficulties for Palestinians to keep their Jerusalem residency. Hussein Ibish says the US may not have a plan B for peace, but the Palestinians do. This Week in Palestine profiles organic farmers.

More details emerge about Hamas' destruction of Palestinian homes in Gaza. Palestinian students support the PA settlement goods ban. Health and economy indicators are down in Gaza but slightly up in the West Bank. Hamas dismisses the idea that Israel would reoccupy Gaza. The PA, human rights groups condemn Hamas executions. Ha'aretz says Israel should apologize for banning Noam Chomsky, and Carlo Strenger says is encourages an academic boycott and flirts with totalitarianism. Yoel Marcus says if Israel does not act, the world will force it to. Pres. Abbas reportedly says Palestine would accept NATO forces on its borders. Settlers say the PA boycott will backfire. Special Envoy Mitchell will formally launch proximity talks next week. Palestinians commemorate the Nakba. Elvis Costello cancels a concert in Israel in protest at the treatment of Palestinians. Hussain Abdul Hussain says Palestinian nonviolence may be the path to statehood. Sami Moubayed says PM Fayyad is following in a tradition of populist Arab politicians. A.B. Yehoshua says Israeli-Palestinian cooperation on peace is the best answer to Iranian meddling.

Israelis debate, PM Fayyad condemns, Israel's barring of Noam Chomsky and other Jewish critics from the occupied territories. Roger Cohen says the rising fortunes of a West Bank brewery are a barometer of the success of the PA's policies. The PA launches a door-to-door settlement goods boycott effort, introduces penalties for merchants. Settlers call the policy "economic terror." Palestinian girls win an award at the Intel Fair. Hamas executes three men. Xinhua asks how to tell if there is progress in talks. Israel rejects Qatari diplomatic offers. The Israeli military is concerned settler violence could spark another Palestinian uprising. Haaretz begins a series on the controversial new "Museum of Tolerance" in Jerusalem. Israel agrees to a French request to allow building materials into Gaza to rebuild a hospital. The JTA asks if PM Netanyahu's policies are alienating Israel's European allies, and interviews Aaron David Miller. Ali Sawafta and Tom Perry analyze PM Fayyad's popularity.