Lebanon grants employment rights to Palestinian refugees. Aaron David Miller recalls trying to arrange a visit for Pres. Arafat to the Holocaust Museum. An American woman seeks justice for her Palestinian husband. An elderly woman is killed by unknown assailants in Gaza. Palestinians say Israeli settlers beat a 10-year-old Palestinian girl. The PA allocates $1 million for student fees. Israeli academics say they're being threatened by the extreme right. Announcement of direct negotiations continues to be delayed and the Quartet is reportedly ironing out differences on a statement. Three Palestinian children are held under onerous conditions by Israel. Four Palestinians face criminal charges for selling banned settlement goods. Edna Canetti says the occupation has become part of Israeli culture. Israeli teachers are ordered not to attend a Nakba seminar. Israel demolishes a Bedouin village for the fourth time in four weeks. Hamas says Israel is blocking mail services to Gaza. A Palestinian man seeks justice for the rubber bullet killing of his 10-year-old daughter by Israeli troops.

Direct negotiations are anticipated shortly.The Israeli military condemns pictures of an ex-soldier posing with Palestinian prisoners, but she insists she did nothing wrong. The easing of the Gaza blockade may strengthen Hamas. The PLO says Israel is trying to block a Quartet statement on direct talks and is imposing preconditions. Hamas leaders accuse the PA of waging a “war against Islam.” The World Bank grants the PA $5 million for teacher training. A projectile fired from Gaza wounds two Israeli soldiers, and another is injured while a Palestinian is killed in a separate incident. An Israeli court holds the state responsible for the rubber bullet killing of a 10-year-old Palestinian girl. Ha'aretz says business is now the main topic of conversation in Ramallah. Israeli rightists plan a demonstration in support of rabbis who authorize the killing of non-Jews. Gershon Baskin asks what will happen in direct negotiations.Ben White says the Jordan Valley is a microcosm of Israeli colonization. Harvard says its sale of Israeli assets is not connected to any boycott. Jennifer Laszlo Mizrahi says Palestinian education is crucial. Israel is criticized for discrimination against Palestinian citizens in higher education. Jonathan Cook says Israel must open the archives from 1948. Hussein Ibish looks at Palestinian efforts to use state building and education to bolster diplomacy.

Direct negotiations may be announced imminently. Palestinians reiterate the demand for settlement freeze. Pres. Abbas says consultations are ongoing. Hamas and other extremist groups denounce negotiations. Norway's FM says the PA needs financial support. DM Barack approves the purchase of F-35 fighter jets. Five years after Israel's unilateral redeployment, Gaza's future remains uncertain. Amira Hass says Hamas relies on brute force to rule in Gaza. Akiva Eldar says the plight of Palestinian citizens of Israel shows what would be the ugly face of a binational state. Israeli occupation troops begin to experiment with politeness. The PA issues a one-year progress report on state and institution building. Sherwin Pomerantz says Israelis must support the new planned Palestinian city in the West Bank. The PA intends to stop referring patients to Israel. The BBC looks at the commando unit that stormed the Gaza flotilla, and Gwynne Dyer says both flotilla activists and Israel are lying about the incident. A bereaved Gaza doctor publishes a new book promoting peace. Tensions continue to fester between Hamas and Islamic Jihad. Hussein Ibish examines where the parties find themselves on the eve of direct negotiations. Ziad Asali says the PA is preparing to use its education system to combat extremism.

Jackson Diehl questions Pres. Abbas' commitment to peace. Settlers fret over what will happen during talks and after the moratorium expires in September. The EU says major powers are working on establishing direct talks, which may begin next week. The PA and Israeli economy ministers meet but Palestinians are adamant about continuing the settlement goods boycott, which they say is working. The PA issues a one-year-on report saying that state and institution building are proceeding in spite of the occupation. Aaron David Miller says direct talks are no panacea. Shlomo Avineri says both Jews and Palestinians are national groups with a right to self-determination. Israel is dismantling a Jerusalem barrier constructed during the second intifada. PM Netanyahu may propose Israeli withdrawal from 90% of the West Bank. Shira Herzog and Leonard Fein both say only two states can bring peace. George Hishmeh dismisses claims that Arabs don't care much about the Palestinian issue.

The Washington Post profiles the joint ATFP/APN internship program for Israeli and Palestinian students. George Will says PM Netanyahu and Pres. Obama do not understand each other. The CSM says land is a symbol of identity for Israelis and Palestinians. James Carroll looks at the importance of Jerusalem. Palestinians are pressing to bring the Quartet into efforts to revive direct negotiations. Netanyahu rejects the 1967 borders as a basis for negotiations. Arab leaders will meet in Cairo. Lebanon considers extending more rights to Palestinian refugees. Palestinian officials say the US has approved their proposal for framing direct negotiations, but await Israel's response. Israel's military is taking the narrowest possible interpretation of a court ruling opening a major West Bank highway to Palestinian traffic. Palestinian citizens who do not serve in Israel's military are denied university housing. Larry Derfner says the flotilla raid was ill-conceived. Interior Minister Yishai confirms that building after Sept. 26 will be confined to existing settlement blocs. Michael Young says Tony Judt's embrace of impossible bi-nationalism was a symptom of the lack of any real solution. Mshari Al-Zaydi says many have a stake in not resolving the conflict. Abdullah Iskandar says Pres. Abbas faces an impossible choice on direct talks.

The NYT says Pres. Abbas should return to direct talks. The reopening of the Jenin Cinema is part of the revival of the city. Israel's Gaza flotilla inquiry doesn't appear to be assigning responsibility. Israel's military chief of staff says his troops weren't ready for resistance during the raid. Nahum Barnea calls PM Netanyahu's testimony “catastrophic.” The UN launches its own inquiry, which may help restore Israel's ties with Turkey. Millions of dollars worth of aid to Gaza is piling up in warehouses. The CSM examines Hezbollah's “evidence” that Israel assassinated former Lebanese PM Hariri. The PA Justice Ministry asks for a clearer separation of powers. A Palestinian cleric is injured trying to block the demolition of a Muslim cemetery in Jerusalem. US officials say they are optimistic about the resumption of direct negotiations. UNRWA denounces an Israeli TV broadcast. Amira Hass says Israeli occupation forces often behave like bullying children with guns. Reports claim DM Barak wanted to launch a major attack on Lebanon following the recent border incident. Right-wing settlers clash with Israeli occupation troops in Jericho. Ali Ibrahim says Arabs should reach out to Israeli public opinion.

Hezbollah's leader again accuses Israel of responsibility for the assassination of former Lebanese PM Hariri. Micah Zenko says Israel should be open about its nuclear arsenal. A PA official denies claims by Fatah officials that a cabinet reshuffle is imminent. Israel will increase water supplies to Bethlehem. Israeli officials testify at the flotilla attack inquiry, and DM Barak takes full responsibility but contradicts PM Netanyahu. Pres. Abbas will again ask the US for clear terms of reference for direct talks and Akiva Eldar says he faces a difficult choice. Barak says that a robust peace process will end international pressure on Israel. Ami Ayalon says Israel should begin the process of voluntary resettlement of settlers back into Israel. Settler rabbis refuse to be interrogated over a book authorizing the killing of non-Jews. Asharq Al-Awsat interviews PLO official Ahmed Qurei. Shlomo Ben-Ami warns that if mishandled, the peace process could lead to war. The Arab News says Hamas is wrong to condemn the Arab League's approval of direct negotiations. Hussein Ibish looks at political and regional influences on Hamas' policies.

Tom Friedman finds wisdom in a new movie about Israelis and Palestinians. Israeli officials are due to testify before the flotilla inquiry. Israelis and Palestinians in Jerusalem use wire to divide themselves. The LA Times looks at lessons and legacies of Israel's unilateral redeployment from Gaza. Israel destroys more Palestinian homes in the Jordan Valley. A Fatah official says there will be a cabinet reshuffle within two weeks. Libya frees an Israeli photographer as part of an aid deal on Gaza. A Palestinian human rights group says Israel plans to deport 20,000 Palestinians from Jerusalem. Pres. Abbas' office again clarifies that he has no objection to Jews serving in any international force deployed in Palestine. A lack of translators is hindering Israeli military police investigations into abuses. A young Palestinian files court charges that Israeli authorities tortured him. Yossi Beilin says until Israel changes its attitude towards peace, it will be isolated. An Israeli court confirms orders to seal a synagogue in an unauthorized settler outpost. The National says Israel should be held accountable for the flotilla attack. Adel Safty says strategic considerations dictate Abbas' return to directing initiations.

Israeli Amb. Oren says the Middle East is at a crossroads between war and peace. A thriving Jenin, with a reopened main cinema, is an example of Palestinian progress in the West Bank. Palestinians say the economy could grow by 20% per year under peace. Hamas' military wing welcomes rocket attacks from Sinai. Palestinian-Israeli and West Bank business leaders meet in Nablus. Several recent border incidents highlight Israeli security concerns. Older Gazans remember Israeli civilians, but youths know only the Army. Three are injured in a clash between Hamas and Islamic Jihad. Hamas leaders urge the kidnapping of Israeli settlers in the West Bank. Zeev Sternhell says it's time for both Israeli and Palestinian leaders to be honest about their intentions. Former HHS Sec. Donna Shalala says she was humiliated at Ben-Gurion Airport because of her Arab heritage. Saudi Arabia is coaxing the PLO to enter direct talks. The BBC profiles child labor in Gaza. Laila El-Haddad says calling Gaza “a prison camp” is an understatement. The New Statesman interviews Palestinian MK Haneen Zoabi. Ori Nir says it's time to confront Israel's extremists. Hussein Ibish says both Arab and Israeli leaders are behaving in an undignified manner.

Israeli Amb. Oren says the Middle East is at a crossroads between war and peace. A thriving Jenin, with a reopened main cinema, is an example of Palestinian progress in the West Bank. Palestinians say the economy could grow by 20% per year under peace. Hamas' military wing welcomes rocket attacks from Sinai. Palestinian-Israeli and West Bank business leaders meet in Nablus. Several recent border incidents highlight Israeli security concerns. Older Gazans remember Israeli civilians, but youths know only the Army. Three are injured in a clash between Hamas and Islamic Jihad. Hamas leaders urge the kidnapping of Israeli settlers in the West Bank. Zeev Sternhell says it's time for both Israeli and Palestinian leaders to be honest about their intentions. Former HHS Sec. Donna Shalala says she was humiliated at Ben-Gurion Airport because of her Arab heritage. Saudi Arabia is coaxing the PLO to enter direct talks. The BBC profiles child labor in Gaza. Laila El-Haddad says calling Gaza “a prison camp” is an understatement. The New Statesman interviews Palestinian MK Haneen Zoabi. Ori Nir says it's time to confront Israel's extremists. Hussein Ibish says both Arab and Israeli leaders are behaving in an undignified manner.