Israeli extremists stage a provocative rally in occupied East Jerusalem. Indirect negotiations may begin soon. Israel is continuing to impede Palestinian access to a West Bank highway. Efforts are underway to preserve Gaza's antiquities. A Hamas fighter is killed by Israeli forces. Hamas issues an animated video of a captured Israeli soldier. Israeli officials say that despite claims to the contrary PM Netanyahu has ordered a settlement freeze in Jerusalem. Pres. Abbas will meet Pres. Obama soon. Sen. Schumer and ADL leader Foxman join the chorus of condemnation against the administration's Israel policies. The Guardian says Netanyahu may be counting on a Republican victory in November. The US military is united in its conviction that lack of peace is major strategic problem. The National is skeptical about proximity talks. The Arab News and Abdullah Al Shayji call for major changes in US policy. Ghassan Khatib Says the occupation is the ultimate incitement.

Roger Cohen says Israel is driven by deep but groundless fears. Hamas still preaches resistance but is criticized by more extreme groups for suppressing anti-Israel activity. Several Israeli leaders hint at an unannounced settlement freeze in occupied East Jerusalem, and PM Netanyahu suggests territorial compromise on Arab neighborhoods and a Palestinian state with "temporary borders." Hamas says Palestinians expelled from the West Bank will not be allowed into Gaza. Palestinians say a settler rally is a "provocation." Special Envoy Mitchell meets DM Barak, as Israel offers "gestures" to the Palestinians. The UN says the recent easing of the Gaza blockade shows more can be done. Yossi Verter says Israel cannot avoid US pressure. The Forward condemns intimidation against Judge Goldstone. Patrick Seale looks at the rise of religious fanaticism in the Israeli military. George Hishmeh says Israel is in danger of becoming a pariah state.

Daniel Terris says personal attacks on Judge Goldstone don't help Israel. Israeli peace activists promote new flag. Palestinians deny Pres. Abbas' health is failing. The Israeli military will investigate reports of the use of human shields. The PA pledges to stop Palestinians working in settlement construction. Special Envoy Mitchell is returning to the region. Projectiles fired toward Israel land in Jordan. The Israeli military arrests 24 Palestinians in the West Bank, expels a former prisoner to Gaza. PM Fayyad vows to step up popular resistance. NSA Jones warns lack of peace is strengthening Iran. Akiva Eldar says Pres. Obama has offered PM Netanyahu a gentleman's agreement on Jerusalem, but Israel says settlement activity will continue anyway. Settlers promote tourism in the occupied territories. WJC President Ron Lauder again criticizes Pres. Obama, and Israeli extremists burn the President in effigy. Protesters condemn an attack on a Palestinian woman in Jaffa. Jewish Americans worry about accusations of "dual loyalty." Daoud Kuttab says the US has determined that Israel is primarily to blame for the Mideast peace impasse.

Martin Indyk says PM Netanyahu must choose between confronting his right wing or the US president, and that when Israel can go it alone, it can decide things on its own. FM Lieberman says an "imposed solution" would provoke violence. Hamas burns recreational drugs, taxes cigarettes. The PA denies reports of an upcoming peace summit. US officials strongly criticize an ad saying Jerusalem is beyond politics. Bradley Burston says Israel must be freed of the occupation. YNet interviews PM Fayyad on state-building and nonviolent protests. The Israeli military complains about settler violence, prepares for a West Bank pullback. The New Israel Fund gets more donations in the wake of intense criticism. American Jewish leaders are criticizing the administration in public, but defending it in private. Israeli and Palestinian villagers build relationships across the Green Line. Rahm Emanuel says there is no US peace plan. The UN says Palestinian armed factions in Lebanon are a threat to regional stability. Bret Stephens says the US should leverage Israeli concerns about Iran for progress on settlements. Rashid Khalidi says Israel is acting in bad faith in Jerusalem.

Israel enjoys a somber 62nd Independence Day. Richard Cohen says Pres. Obama should reach out to the Israeli people. Hamas leaders say they will never recognize Israel, vow more executions and threaten to capture more Israeli soldiers. Gaza merchants complain of unreasonable Hamas taxes. PM Fayyad prepares to reshuffle his cabinet. Israel seeks to cut off funding for Palestinian nonviolent protests. Avishai Margalit urges lifting the siege of Gaza. The PA prepares to fight West Bank deportations. DM Barak says Palestinians will rule themselves "whether you like it or not." Bilal Hassen says Pres. Obama has backed down. Asharq Al-Awsat interviews Fatah's Azzam al-Ahmad. Linda Heard says Israel may start a war in Lebanon for political reasons. Murad Bustami says violence is counterproductive for Palestinians. Foreign Policy seeks a variety of views on why Middle East peace has failed thus far. Aaron David Miller says peace between Israel and the Palestinians is not possible under current circumstances.

ATFP President Ziad Asali says Palestinians are developing a new diversified and peaceful strategy for liberation. Jackson Diehl says Palestinian-Israeli peace is not achievable under present conditions. Menachem Begin's grandson critiques national identities. Al Qaeda-style fanatics in Gaza claim 11,000 followers. DM Barak expresses concern about rift with the United States, says occupation must end. Israel seals the occupied West Bank for two days. Pres. Peres urges faith in peace. The PA denies Israel is to transfer more territory to its control. Pres. Abbas urges Palestinian prisoners to promote national unity. YNet says even PM Fayyad's harshest critics are giving him credit. Ari Shavit urges Netanyahu to act before it is too late. Akiva Eldar says Israel is turning its back on the Arab Peace Initiative. Shlomo Avineri asks what would happen if Palestinians declared statehood. Tariq Alhomayed says the onus for national reconciliation is on Hamas. Abdul Rahman Al-Rashid says Netanyahu's policies are strengthening the Arab position. The Jordan Times says Israel is escalating tensions. IPS interviews Ziad Abuzayyad.

Hamas executions highlight Palestinian political divisions. King Abdullah of Jordan tells the Chicago Tribune time is running out for peace. Israeli forces kill a Palestinian in Gaza. Palestinians see return of Israeli military rule in eviction order. Zeev Sternhell says Israeli policies are turning Jerusalem into a settlement. Israeli Amb. Oren meets the J Street leadership. Ha'aretz reports that unauthorized settler outposts slated for demolition are instead receiving significant state funding. Sec. Clinton says Israel must do more for peace. Students in occupied East Jerusalem get half the funding of those in West Jerusalem. Judge Goldstone is banned from his grandson's bar mitzvah. Vice PM Ya’alon says Israelis should be able to stay in "a Palestinian entity" but "under Israeli sovereignty." The JTA profiles tensions in occupied East Jerusalem. Rep. Robert Wexler's makes his public debut as President of the Center for Middle East Peace. UC Berkeley's student government tables a motion on divestment from Israel till next week. The cattle trade continues in Gaza tunnels.

A US representative to the UN strongly reaffirms US commitment to a two state solution and Pres. Obama declares this "a vital national security interest." Hamas denies closing Gaza tunnels and Egypt opens the Rafah crossing. Hamas executes two Palestinians. Israel is considering more settlement construction in occupied East Jerusalem. WJC President Lauder questions US commitment to Israel's security. Ha'aretz reports that Obama is skeptical about Netanyahu's willingness and ability on peace. Settlers uproot 300 olive trees. David Axelrod says a two state solution is in Israel's interests. Israel prepares soldiers for more settler violence. Palestinians increasingly adopt nonviolent protests. Carlo Strenger says any new US peace plan must deal with theological problems. George Hishmeh says Netanyahu's intransigence undermines Obama. Michael Jansen says Israel's new expulsion orders in the West Bank are another violation of international law. Daoud Kuttab describes how Palestinians are affected by Israeli military rule.

Israelis and Palestinians bicker over street names. Israeli soldiers kill two Palestinian militants in Gaza. Egypt closes the Rafah crossing as Israel warns all its citizens to leave the Sinai, and Hamas orders Gaza tunnels to shut down. Controversial new Israeli deportation orders come into effect. Israeli Pres. Peres says a Palestinian state is in Israel's interests. Special Envoy Mitchell will return to the region next week. Shaul Arieli says Israel must give up the idea of exclusive sovereignty in Jerusalem. The Israeli military complains Palestinian protests are not nonviolent. Senators urge Sec. Clinton to heal relations with Israel. Gen. Petraeus calls Israel a strategic ally. The Jerusalem Post confirms PM Netanyahu avoided the nuclear summit for bilateral reasons. A 43-nation plan for managing Mediterranean water resources collapses because Israel will not accept the term "occupied territories." UK advertising authorities warn Israeli tourism officials not to represent the occupied territories as part of Israel. Mahmoud Habboush despairs over Palestinian disunity. Omar al-Sharif says Jordan is changing its policy towards Israel. Rami Khouri says an international peace plan would be better than an American one.

The World Bank says the PA is on track with state building, but hampered by Israeli restrictions. Israel's new military order allowing for the potential eviction of tens of thousands of Palestinians from the occupied West Bank draw heavy criticism. Richard Cohen praises a new film about Israel's West Bank separation barrier. Aluminum and wood will be allowed into Gaza for the first time in three years. Reports say the US is refusing entry to Israeli nuclear scientists. Israeli forces kill a Palestinian in Gaza. Bradley Burston says Middle East experts who claim time is on their side are lying. David Makovsky says there are few prospects for improved relations between Pres. Obama and PM Netanyahu, and Simon Tisdall says it could get worse. Israel's mayor in Jerusalem wants to resume Palestinian home demolitions. Israeli officials say they will reject US proposals for timelines and benchmarks in peace talks. Sacked Palestinian official Rafiq Husseini says he was set up. The Independent looks at the plight of Palestinian refugees in Lebanon.