An American psychiatrist is helping children in Gaza cope with stress and trauma. Tom Friedman says it's time for Saudi Arabia to get involved in the peace process. The Arab press is skeptical about negotiations. The PA seeks to reduce public spending. Pres. Abbas says there can be no peace agreement that excludes Gaza. Israel considers impounding ships trying to break the blockade. A mortar launched from Gaza lands near Israeli schools, but causes no injuries. Hamas threatens the PA over arrests. Ha'aretz says the partial settlement moratorium will continue in practice. Aluf Benn says the most important thing Israel needs from negotiations is a border. The PA says it has arrested six people for last week's drive-by killing of Israeli settlers by Hamas. Pres. Obama and Sec. Clinton call on US Jews and Muslims to support peace. Palestinian politicians are outraged by a TV satire program. Ahmed Moor says Palestinian refugees in Lebanon should be disarmed and integrated. The JTA looks at settlements and other obstacles to peace, and interviews Israeli Amb. Michael Oren. Asharq Al-Awsat interviews Palestinian Spokesman Abu-Rudaynah. The Media Line looks at tensions between Palestinian and Iranian leaders.

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