ATFP President Ziad Asali explains the Palestinian state and institution building program. At a major conference in Israel, PM Fayyad demands an end to the occupation, and DM Barak says without peace, Israel will be an apartheid state. Hamas says it may broaden the conflict with Israel. Israel is still considering options on a prisoner exchange. Hamas submits its response to the Goldstone report. A senior Fatah leader makes a goodwill visit to Gaza. A third "barrel bomb" washes up on an Israeli beach, and Israel bombs a Gaza smuggling tunnel in response. Dubai warns Israel, Hamas. A Ha'aretz commentary says fear of peace will be the death of Israel. Israeli officers and international experts say the Israeli military violated the rules of war by placing soldiers lives ahead of civilians. Special Envoy Mitchell reportedly urges Europeans to push for renewed negotiations.

Israel says no charges will be filed in the case of an American badly injured by occupation forces in the West Bank. Controversy continues over Israel's alleged use of white phosphorus in the Gaza war. The term of the Palestinian parliament expires. Hamas says prisoner negotiations with Israel have ended, and insists that it's not afraid of elections. Three explosive devices wash up on a beach in Israel. Iran blames Israel for the assassination of a Hamas operative in Dubai, but Hamas points to Arab killers. Jordan is criticized for stripping citizenship from Palestinians. Israel risks Muslim anger over holy site construction. The limited settlement moratorium is reportedly starting to have an impact. King Abdallah of Jordan urges more US peace efforts. Pres. Abbas is seeking a way to return to peace talks, and The National says people should heed his warnings. The UN presents evidence contradicting Israel's claims about Gaza war crimes. Palestinian politicians in Israel say they face persecution. Tariq Alhomayed asks whether Hamas is threatening Israel or the Arabs when it pledges revenge for the Dubai murder. Hussein Ibish analyzes the new PA budget for state and institution building.

The Washington Post looks at Israel's ties to Pacific islands. Israel claims the senior Hamas official murdered in Dubai was a key figure in arms smuggling, but an Israeli minister denies any responsibility. Pres. Abbas says he is not looking for US guarantees, calls for a three month settlement freeze and warns Israel is creating a single state. The governor of Hebron warns against increased settlement activity. Israel denies reports it disciplined officers over white phosphorus use in Gaza. Palestinians launch their first private equity fund. A Ha'aretz commentary says the Israeli left must wake up before it's too late. The Israeli army seizes a hilltop in the occupied West Bank. An EU official says proximity talks will begin soon. A Guardian commentary says Israel's opposition to Palestinian state building is leading to a new intifada. The Independent says Palestine is slowly dying in the West Bank, and Lord Phillips of Sudbury calls for sanctions to save Israel from itself. A Gulf News commentary says Israeli leaders must evolve, and the Arab News defends the Goldstone report.

PM Fayyad says Palestinians are working with Special Envoy Mitchell to ensure conditions are right for negotiations. Israel cracks down on nonviolent protesters in the occupied West Bank. The film Avatar stirs controversy in Israel. Human Rights Watch disputes Hamas' claim that it did not target civilians. Hamas demands Palestinian unity before peace talks with Israel. Pres. Obama says the US supports Israel but is sympathetic to the Palestinians. A survey chooses the Palestinian best of 2009. Hamas claims one of its operatives was assassinated by Israel in Dubai. Palestinians object to a new Israeli light rail service in occupied East Jerusalem. A Ha'aretz commentary says a binational state is impossible, and another says Israel must investigate its conduct in the Gaza war. PM Netanyahu promises confidence-building measures with the PA. Historians say Israel destroyed tens of thousands of Palestinian books after its establishment. An Israeli court protects the right to protest. A former PA official says corruption will allow Hamas to seize power in the West Bank. Israel has stolen billions in Palestinian workers' insurance money. Eyad El-Sarraj describes the suffering in Gaza.

Hussein Ibish explains why Palestine must be a secular state. Hamas clears itself of Goldstone report war crimes charges. PM Netanyahu says Israel's relief efforts in Haiti have boosted its image. Israel appoints a more moderate chief military rabbi. Pres. Abbas says the Palestinian capital must be in Jerusalem. An outspoken Palestinian MK denounces Holocaust denial. Gideon Levy says Holocaust remembrance cannot excuse the occupation, and Ha'aretz says settlers who attacked Palestinians are terrorists. At Davos the head of the Arab League presses for a Palestinian state. The long-neglected cinema in Jenin is being renovated. A financial dispute threatens a key Gaza power plant. The new Fatah charter does not call for the elimination of Israel. Israel plans to relocate the separation barrier at the site of nonviolent protests. Palestinians are divided in supporting the Egyptian and Algerian soccer teams. Gaza fishermen defy dangers. The Jordan Times backs PM Fayyad's warning on peace, and Daoud Kuttab says Jerusalem is the key. Hani Almadhoun says Hamas benefits from the siege of Gaza.

The PA issues a major new state and institution building document. The Obama administration scales back expectations on Middle East peace, but along with Israel and Egypt continues to pressure Palestinians to return to talks. Israel's partial settlement moratorium impacts Palestinian laborers. The term of the Palestinian parliament expires. PM Fayyad says Europe should be more engaged. Settlers attack Palestinians in retaliation for the demolition of an outpost settlement. The PA cabinet regrets the lack of elections. 54 House members urge the Obama administration to seek the end of the siege of Gaza. Special Envoy Mitchell may engage in "shuttle diplomacy." Another diplomatic dispute is brewing over the Goldstone report. The UN expresses frustration on Gaza rebuilding. A settler rabbi is arrested in connection to a mosque arson in the occupied West Bank. Israel plans to absorb 7,000 Indian villagers purportedly from a "lost Jewish tribe" near Myanmar. The Daily Star says anger at Israel's actions is understandable.

An aide to Pres. Abbas explains his conditions for resuming negotiations, and Palestinians say they are studying new US proposals for lower-level talks. PM Netanyahu plants trees in a settlement, settlers use tents to skirt the moratorium, and a Ha'aretz commentary says only an idiot would say Israel has frozen settlement activity. Israel confirms it will not set up an independent inquiry into its Gaza war conduct, but the PA establishes a committee to look into allegations about its own conduct. DM Barak says Israel's lack of an agreement with the Palestinians is a greater threat than Iranian nuclear weapons. Palestinians seek closer ties to Saudi Arabia. A diplomatic dispute intensifies over treatment of official US cars at checkpoints in the occupied territories. Sami Abdel-Shafi says Palestinians will return to negotiations, but with no expectations. House Foreign Affairs Committee Chairman Howard Berman says because of the occupation Israel is in danger of ceasing to be Jewish and democratic.

PM Netanyahu says Israel will keep some settlements forever, angering Palestinians. The LA Times profiles Tzipi Livni. The Obama administration reiterates its commitment to peace but lowers expectations. Activists fear a new intifada. Gaza clans say Hamas is undermining tribal justice. A former Israeli negotiator says an agreement is impossible. Several commentaries examine the state of the peace process and Israel's policies. Joel Beinin looks at Palestinian nonviolent resistance. Meron Benvenisti says that Israel has imposed a binational reality that cannot be undone. Hussein Ibish analyzes the dangers of political certainty among Arabs and Israelis.

Special Envoy Mitchell meets with Pres. Abbas. A Ha'aretz commentary asks who is to blame for stalled talks, as Obama administration officials say they underestimated the obstacles. Controversy continues to surround Israel's aid effort in Haiti. Hamas asks media to stop describing it as "deposed," and one of its leaders denies he said it recognizes Israel. PLO officials say Israel is imposing a one-state reality. UNSG Ban says the Middle East conflict is intensifying. The Jerusalem mayor defies a court order to remove Jewish settlers from a Palestinian house. Settlement construction is continuing in spite of the "freeze." A commentary in The National says there are lessons for Gaza in Haiti's devastation. Rami Khouri speculates about Europe's role and George Hishmeh says Israel needs introspection. PM Fayyad leads a civil society effort against settlement activity. Gaza faces a dangerous fuel crisis. Jeffrey Goldberg interviews Elliot Abrams on West Bank development.

Israel deports the American editor of the Ma'an news agency. Special Envoy Mitchell continues his trip to the region. Saeb Erekat says Israel is sabotaging peace. Pres. Peres says that without new negotiations there could be a third intifada. Yossi Sarid says DM Barak is legitimizing the evils of Israeli occupation. Palestinians claim Jewish worshippers vandalize a cemetery. PM Netanyahu says Israel must retain a presence in the West Bank even after a peace agreement. A Hamas leader says the group recognizes Israel's right to exist. Motorola may relocate from the occupied West Bank. A yeshiva preaches hate and terrorism. Critics accuse Israel of exploiting the disaster in Haiti for public diplomacy. Israel eases its ban on Gaza's strawberry exports.