NEWS: Israel releases withheld Palestinian tax revenues. PA Economy Minister Abu Libdeh resigns amid corruption indictments. Hamas leaders accuse Pres. Abbas of not being serious about national unity. Iceland becomes the first Western European state to recognize Palestine. The Forward profiles the pro-Israel group StandWithUs. The ACLU files suit against a Michigan bus company that refused an advertisement critical of Israel. A bill pending in the US Congress would remove the presidential waiver on moving the US Embassy in Israel to Jerusalem. Asharq Al-Awsat reports on an allegedly major split in the Hamas leadership. The Independent looks at the plight of Palestinians in occupied East Jerusalem's old city. COMMENTARY: Thomas Friedman says if Israel is concerned about instability in the Arab world, it should move quickly to bolster the position of PM Fayyad. Zvi Bar'el says Israel's hostile reaction to Arab uprisings might undo its peace treaty with Egypt. Bradley Burston says in uniting to attack moderates, the Jewish pro-occupation extreme right and anti-Zionist ultra-left find common cause. Kenneth Bandler says Jewish Americans need to know more about challenges facing Palestinian citizens of Israel. The Jerusalem Post says Palestinians should focus on the unfinished job of state building. Yossi Alpher says both sides are to blame for Israel's shift to the nationalistic right. Bitterlemons Interviews Palestinian MK Haneen Zoubi. The Jordan Times says King Abdullah was right to remind Pres. Peres about the urgency of peace.