NEWS: Israel announces new settlement plans that could cut occupied East Jerusalem off from the rest of the West Bank. A raft of new right-wing legislation shows the rise of the Israeli far-right. Israeli air strikes injure five in Gaza city. Israel is angered by Honduras' support for Palestinian statehood. Palestinians say they are determined to press forward with a UN initiative. The PA orders its forces to prepare to prevent violence in September. An American photojournalist says Israeli troops deliberately fired at him. Palestinians remain frustrated at the lack of national unity. Egyptian officials accuse Palestinian extremists of involvement in attacks in Sinai. Palestinian leaders have been invited to Washington for urgent consultations. Jeffery Goldberg interview Tzipi Livni. COMMENTARY: Sari Nusseibeh reviews a new book by Jeremy Ben-Ami. Tom Parry analyzes Palestinian options at the UN. Akiva Eldar says new US ambassador to Israel Dan Shapiro's main role is healing rifts between Pres. Obama and the Jewish-American community, not PM Netanyahu. David Hearst says Israel has no answer to Palestinian determination to remain on their land. The National says there is no contradiction between UN recognition of Palestine and negotiations with Israel. Sam Bahour says Palestinians may be giving up on a two-state solution. Justyna Pawlak says the EU is struggling to make its voice heard in the Middle East. Cole Stangler says Israel's new anti-boycott law may backfire. Roberto Quesada says Honduras has nothing to apologize to Israel for by supporting Palestinian statehood. The Forward hosts a forum on a Palestinian UN initiative with Hussein Ibish, Alan Elsner, Danny Ayalon, Shlomo Gazit, David Harris, Gabriela Shalev, Lara Friedman and Maen Rashid Areikat.