The lull in Middle East peace talks may become permanent. Hamas says it will destroy “illegal” structures on public land. The PA says the new planned Palestinian city can absorb settlement workers. Saudi Arabia pledges $100 million in aid to the PA. Settlers confirm work has begun on up to 600 new housing units. Israel says talks are the only option. US midterm elections may affect policy and negotiations. Palestinians are angered by new incentives for settlers to move to Jerusalem. Akiva Eldar says the Oslo Accords have turned into a tool of the occupation. The Israeli military prepares for a possible PA ban on area A incursions. The Pope says peace is possible and urgently needed. Elyakim Haetzni condemns settler violence. Hamas is accused of turning a blind eye to extremist vandalism. Israel is investigating a Gaza war atrocity. Lawrence Wright has a one-man performance about the war. Abdullah Iskandar questions whether talks could lead to a Palestinian state. Gwynne Dyer says Israel's new loyalty oath is an effort to change the subject. The Arab News says only justice for the Palestinians can ensure Israeli security.

Coverage continues of Sec. Clinton's remarks at the Fifth Annual ATFP Gala. MK Tibi says Israel's new loyalty oath is a repudiation of Palestinian citizens. Settlers race to construct housing in the West Bank. Palestinians say negotiations are on hold until the US midterm elections. Settlers attack Palestinian olive harvesters. Pres. Peres says peace with the Palestinians would help the US deal with Iran. The PA uncovers a Hamas arms cache in the West Bank. Bradley Burston says FM Lieberman is the new Kahane. Israel prepares for possible unilateral measures. PM Netanyahu says Kadima is not joining his government. The US is also mulling a “plan B” on peace. George Hishmeh asks what maneuver Netanyahu will come up with next. IPS profiles former Israeli soldiers opposed to the occupation.

Remarks by Secretary of State Hillary Rodham Clinton at last night's Fifth Annual ATFP Gala are covered by numerous publications. Tom Friedman says Israel really is behaving like a spoiled child. Palestinians mull seeking international recognition. The drive to free convicted Israeli spy Jonathan Pollard revs up. PM Netanyahu insists settlements are not an obstacle to peace. Settlers torch and vandalize a school near Nablus. Rachel Corrie's parents confront the bulldozer driver at a civil trial in Israel. A blast at a Hamas compound in Gaza injures children. Israelis mark 15 years since the assassination of PM Rabin. Settlers are working on 550 new homes in the West Bank. Avi Issacharoff says settlements are incompatible with peace. Rappers face tough times in Gaza. Palestinian citizens of Israel feel increasingly alienated.

PM Netanyahu says Israel's new loyalty oath will also be mandatory for Jews. Israel is pushing for Palestinian recognition of its “Jewish character.” Israel claims Hamas has antiaircraft missiles. A report suggests that jailed Fatah leader Marwan Barghouthi might be included in an Israel–Hamas prisoner swap. Palestinians say Israel seeks to retain the West Bank as a market. Israeli officials say a settlement freeze extension might be possible. Palestinians say Israel is seeking de facto recognition of annexation of Jerusalem. Netanyahu is still resisting court ordered demolitions of unauthorized outposts. Palestinians may propose a UN resolution calling for settlement evacuation. The ongoing olive harvest has been the most violent on record. An animated model of former PM Sharon in a coma goes on display in Tel Aviv. The BBC looks at a new film about Palestinian nonviolent protests. Khaled Diab says the Israeli military is not a charitable organization. A leading Israeli rabbi says non-Jews only exist to serve Jews. Tony Karon asks who made Netanyahu the leader of the Jewish people. Linda Heard says Washington should do more to control Israel. Victor Kotsev looks at problems facing Palestinian citizens of Israel.

Israel resumes negotiations with Hamas over a prisoner swap. Israeli settlement building surges, although Israeli officials claimed to be restraining thousands of other new units. Pres. Abbas says PM Netanyahu fears a collapse of his government. An Israeli soldier is jailed for looting following the flotilla attack. The Moroccan king refuses to meet the Israeli president. Abbas says Palestinians will renounce all further claims upon independence. One Palestinian is killed in Israeli air strikes on Gaza. Gaza children place messages to the world in cork boats. Ha'aretz says settlement building in Jerusalem is intended to destroy the peace process. Akiva Eldar says the Israeli right is not making Israel more Jewish, but is making its Palestinian citizens more Palestinian. Michael Herzog says Israel is torn between its “Jewish” and its “democratic” characters. Mudar Zahran says Arab states must do more for peace. The Jerusalem Post asks if the PA is capable of independence. Raghida Dergham says Israel and Iran benefit from their rivalry at the Arabs' expense. The Arab News says there is no connection between settlement activity and Israel's “Jewish character.”

Mustafa Barghouthi says Palestinians should unilaterally declare independence and invite international recognition like Kosovo. PM Netanyahu approves 240 new settler housing units in occupied East Jerusalem. Hamas leaders are banned from entering Egypt. Pres. Abbas reiterates there is no alternative to a two-state agreement, urges Quartet action, and says Israel can call itself whatever it likes. Palestinian refugees are disillusioned. Arab states may ask the UN to recognize Palestine. Zeev Sternhell says Israel's right requires perpetual war, and Gideon Levy says they just hate Arabs. 36% of Jewish Israelis want to revoke Palestinian citizens' voting rights. Elderly Israelis claim former homes in occupied East Jerusalem. There is more criticism of Israel's proposed new loyalty oath, and Jonathan Cook says if he is forced to take it, he will be lying. Palestinian women make a living hitting Jewish skullcaps. The Forward asks if Netanyahu will have to choose between peace and his coalition partners. Abdul Rahman Al-Rashid says Israeli extremists want to expel Palestinian citizens. Joseph Chamie says demographics are a threat to peace. Christopher Hayes looks at settler conduct and ideology in Hebron and Jerusalem.

A diplomatic incident exposes rifts between PM Netanyahu and FM Lieberman. Israeli Amb. Oren says Palestinians must recognize Israel as a “Jewish state.” Palestinians say they will do so if Israel returns the 1967 borders. The US says Palestinians are right to ask for clarified borders, but must do so in negotiations. Israel's mayor in Jerusalem wants to rezone Arab neighborhoods. Israel says it may reconsider its demand for a long-term security presence in the Jordan Valley after Palestinian independence. Israelis and Palestinians try to bridge the divide in the Galilee. Stone-throwing Israeli settlers clash with Israeli soldiers and Palestinians. Larry Derfner says Netanyahu has revealed himself to be an extremist. Avner Cohen says Israel should be open about its nuclear arsenal. The Forward dismisses Israel's new loyalty oath for non-Jews. Israeli forces reportedly train for population transfer. Osman Mirghani says Netanyahu has shown he's not serious about peace. George Hishmeh says Israel doesn't know what it wants. Michael Jansen critiques Israel's new loyalty oath. Daoud Kuttab dismisses Israel's “Jewish state” demand. Hussein Ibish looks at the dangers of another intifada.

Palestinians and Israeli settlers struggle over West Bank olive groves. The CSM asks what's behind PM Netanyahu's latest proposal. The Economist calls it a gimmick. The US urges Palestinians to make a counteroffer and says it does not want a two-month delay in a peace talks impasse. Hamas shuts down the journalists syndicate in Gaza. Israel says flotilla detainees were treated well. Bradley Burston lists 10 mistakes Israel is making. Human rights groups ask Netanyahu to pledge not to transfer populations. There is widespread anger at Israel's sentencing of a Palestinian nonviolent protest leader to one year in prison. Jewish American groups are largely silent about Israel's new loyalty oath for non-Jews. George Semaan says buying time won't fix problems with negotiations. Michael Brull says Israel needs to end the occupation. Hussein Ibish says the US needs a game-changing plan to get talks back on track.

Palestinians and Israeli settlers struggle over West Bank olive groves. The CSM asks what's behind PM Netanyahu's latest proposal. The Economist calls it a gimmick. The US urges Palestinians to make a counteroffer and says it does not want a two-month delay in a peace talks impasse. Hamas shuts down the journalists syndicate in Gaza. Israel says flotilla detainees were treated well. Bradley Burston lists 10 mistakes Israel is making. Human rights groups ask Netanyahu to pledge not to transfer populations. There is widespread anger at Israel's sentencing of a Palestinian nonviolent protest leader to one year in prison. Jewish American groups are largely silent about Israel's new loyalty oath for non-Jews. George Semaan says buying time won't fix problems with negotiations. Michael Brull says Israel needs to end the occupation. Hussein Ibish says the US needs a game-changing plan to get talks back on track.

PM Netanyahu's proposal for Palestinian recognition of Israel as a "Jewish state" is met with widespread skepticism. Palestinians say Washington is not taking the idea seriously either. Israel sentences a leader of Palestinian nonviolent protests to a year in prison. The PA has submitted a formal request for a West Bank airport. Pres. Abbas' office dismisses rumors of his resignation. Deputy PM Ya'alon doubts peace is possible. The French FM says an initiative to restart talks is underway. Akiva Eldar says Netanyahu is trying to get the Palestinians to give up the right of return. Carlo Strenger says the new Israeli loyalty oath demonstrates a hatred of liberal values and MK Tibi says it's another instance of discrimination. Raja Khalidi questions whether conditions are right for successful state building. Hussein Ibish warns against another intifada. Gershon Baskin says more popular support is needed for peace. Israel continues to deport Palestinians from the West Bank. Israeli troops are accused of shooting children in Gaza. Sam Bahour and Charles Shamas say the OECD meeting in Jerusalem is an affront to international law. Columbia University establishes the first academic center for Palestine Studies. Gaza's prisons are chaotic.