Pres. Gul of Turkey says Israeli-Palestinian peace will determine the outcome of changes in the Middle East political landscape. Speculation grows as to whether PM Netanyahu or Pres. Obama will be the first to introduce new peace ideas. The new PA development plan looks beyond independence towards building the new state. A new outpost is founded by settlers and immediately dismantled by occupation forces. Israeli tanks enter an industrial zone in Gaza. Sec. Clinton says there is an urgent need to return to negotiations, and Jordan’s King says an EU role is vital. Pres. Abbas reaffirms his opposition to another armed intifada, and PM Fayyad supports nonviolent protests. Ari Shavit says Israel is facing a last chance to make peace and establish its right to exist. Abbas seeks “advice” from France about Palestinian statehood. Gideon Levy says Netanyahu must explain his vision for the future. The family of a captured Israeli soldier accuses Netanyahu of exploiting them. Former Amb. Indyk says the UN may vote to recognize Palestine in September. Larry Derfner says the murder of settlers is unacceptable, but doesn’t justify building more settlements. The US tax-exempt status of the Jewish National Fund is being legally challenged because of its discrimination against non-Jews. JJ Goldberg says Israel is refusing to take yes for an answer from the Palestinians on peace. Daoud Kuttab asks when Palestinians will form new political parties. Basem Ezbidi says both Fatah and Hamas are exploiting the election issue for political purposes.