The New York Times hosts a debate on the effect of tax exempt US donations on Israeli settlement activity. Nick Kristof expresses admiration for Israeli human rights activists. Several commentaries praise warmer relations between Pres. Obama and PM Netanyahu. The PA Economy Minister wants better consumer standards. Israel releases a list of goods still banned in Gaza. Reuters thinks Hamas may have weathered the storm of the blockade. Hamas asks Egypt to host a meeting with Fatah leaders. Obama tells Israeli TV that peace is possible but skepticism is justified. Ari Shavit says Netanyahu must take advantage of his present situation or face further difficulties. Netanyahu hints at flexibility on Jerusalem, says he's ready to discuss settlements and believes direct talks are imminent. Jeremy Bowen says behind the theater of goodwill, US-Israel tensions remain. The National and The Arab News do not approve of Obama's handling of Netanyahu, but the Jordan Times says Israel is beginning to bend to international pressure. Meretz USA releases more of its interview with Hussein Ibish.