Fatah and Hamas provide different accounts and interpretations of a national unity deal. Pres. Abbas tries to reassure Israel and the West. PM Netanyahu is taking full rhetorical advantage of the development, as Israelis express concern, but Ha'aretz says he may have jumped the gun. Regional unrest may have motivated the agreement. Egypt invites the parties to a signing ceremony next week. Jordan and the Arab League welcome the deal. The US says aid to the PA will continue for the meanwhile, but the deal may pose several long-term risks. The White House Chief of Staff may have left the door open for the US to continue to work with a Palestinian unity government. Herb Keinon suggests ways Israel can use the development. The National and the Arab News both say Palestinian unity calls Israel's bluff. Hamas is reportedly insisting on the removal of PM Fayyad. Egyptian policy opens to Hamas and Iran. Aaron David Miller says fear of failure, not of the Israel lobby, is holding Pres. Obama back on diplomatic initiatives. Abbas meets leaders of the Israeli Peace initiative. Israeli artillery injures four Palestinians in Gaza. Israeli and Palestinian security forces are continuing coordination in the West Bank. Ha'aretz says Israel should recognize a Palestinian state. Abbas says the quest for a peace agreement will continue. The Jerusalem Post says Abbas is no peace partner. Bereaved Palestinian physician Izzeldin Abuelaish tours the US with a message of forgiveness. The Forward says the US must take the lead on peace.

Fatah and Hamas announced the outlines of a possible national reconciliation agreement. The US may be reconsidering aid to Palestinians as a consequence, key members of Congress warn. The White House says any new Palestinian government must renounce terrorism and recognize Israel. Jackson Diehl says if the agreement is implemented it will mean the Palestinians are walking away from the peace process. Pres. Abbas' office dismisses criticism from PM Netanyahu. FM Lieberman says Israel will not negotiate with a unity government, and a Hamas leader says negotiations will not be conducted by a new government. Israel launches a nationwide war drill. Israel worries about the future of security cooperation with the PA. Ha'aretz says the agreement may work to PM Netanyahu's advantage. Aluf Benn concludes Hamas has taken over the Palestinian movement. Israel prepares to block the next Gaza flotilla. Israel anticipates and plans for political changes in Syria. Hamas disperses a pro-unity rally in Gaza. Abbas reiterates conditions for resuming negotiations with Israel. Israeli forces arrest settlers trying to enter a holy site in the occupied territories which was the scene of a recent shooting. Larry Derfner criticizes Israel's treatment of Arab air travelers. Daoud Kuttab says chances for the birth of a Palestinian state this fall are about 50-50.

Fatah and Hamas announced the outlines of a possible national reconciliation agreement. The US may be reconsidering aid to Palestinians as a consequence, key members of Congress warn. The White House says any new Palestinian government must renounce terrorism and recognize Israel. Jackson Diehl says if the agreement is implemented it will mean the Palestinians are walking away from the peace process. Pres. Abbas' office dismisses criticism from PM Netanyahu. FM Lieberman says Israel will not negotiate with a unity government, and a Hamas leader says negotiations will not be conducted by a new government. Israel launches a nationwide war drill. Israel worries about the future of security cooperation with the PA. Ha'aretz says the agreement may work to PM Netanyahu's advantage. Aluf Benn concludes Hamas has taken over the Palestinian movement. Israel prepares to block the next Gaza flotilla. Israel anticipates and plans for political changes in Syria. Hamas disperses a pro-unity rally in Gaza. Abbas reiterates conditions for resuming negotiations with Israel. Israeli forces arrest settlers trying to enter a holy site in the occupied territories which was the scene of a recent shooting. Larry Derfner criticizes Israel's treatment of Arab air travelers. Daoud Kuttab says chances for the birth of a Palestinian state this fall are about 50-50.

Following the death of the prisoner, Hamas leaders say they want to crack down on torture. Palestinian security forces fire near Israeli troops in the West Bank. The PA is looking into reports of Palestinians held at Guantánamo Bay. Jordan's king says failure to resolve the Israeli-Palestinian conflict will fuel Middle East violence. Israel denies a report about a new peace initiative. Aluf Benn says PM Netanyahu has fallen into a Palestinian diplomatic trap. The State Department says preserving the peace treaty with Egypt is essential for Israel. Leaked cables suggest Israel urged the US to support Palestinian banks. A new flotilla to Gaza is postponed. An extremist Rabbi urges Israel to encourage Bedouins to leave the country and the occupied territories. Nablus' governor urges calm after shootings near holy site, and settlers vow to return “with vigor.” An armed gang reportedly attacks the Egypt-Israel oil pipeline. Extremist MKs are preparing annexation bills in response to potential EU or UN recognition of Palestine. Israel Finkelstein says Jerusalem excavations are not dangerous but could be handled better. Faisal Al Qasim says the actions of many Arab dictators are worse than Israel's. David Rothkopf says PM Netanyahu has very little time left for effective diplomatic action.

Activists are preparing another Gaza flotilla, and Turkey warns Israel against repeating “the mistake” of last year. Israeli Amb. Oren praises the US-Israel alliance, but Stephen Walt disagrees, and Aluf Benn strikes a middle ground. The PA cabinet calls for an end to settlement activity. Palestinian university employees go on strike. International activists help with the harvest on Gaza’s border. Ha’aretz says the shooting of settlers by Palestinian police must be considered a mistake until proven otherwise, and Palestinians are investigating the incident. A.B. Yehoshua asks why the conflict cannot be resolved. Amir Oren says Pres. Obama can learn from Egypt’s peace treaty with Israel. The Palestinian leadership is trying to avoid a confrontation with Israel. Obama urges Turkey to improve relations with Israel. A Hamas delegation travels to Cairo. A new poll suggests many Egyptians would support annulling the treaty with Israel. Gershon Baskin warns that imposed solutions will not work. Pres. Peres gives Obama a letter from convicted spy Jonathan Pollard. Hassan Barari says the Palestinians don’t have a peace partner in Netanyahu. The VOA interviews Palestinian businessman Munib Al Masri.

An Israeli settler is killed by Palestinian police near a holy site, sparking new tensions. His aunt, an Israeli cabinet minister, says he was killed by a terrorist disguised as a police officer, but an investigation shows the group tried to break through a Palestinian roadblock. Settlers say they go there every night without Palestinian permission. PM Netanyahu calls the incident, which is in the context of an uptick in violence, “heinous.” The New York Times says Pres. Obama must present a peace plan. Israel’s West Bank separation barrier creates psychological divisions as well as physical ones. An Israeli IT company hires Palestinian programmers. Egypt closes the crossing with Gaza for the holidays. PM Fayyad says national unity is crucial for statehood and that Palestinians will soon celebrate Easter in East Jerusalem. Efforts to resume negotiations are underway, and a PLO official says they may not approach the UN if serious talks resume. Israeli officials say Hamas may want to capture more Israeli soldiers. Alon Ben-Meir says Israel must make the next diplomatic move. David Rosenberg says Palestinian leaders are creating their state and this is good for Israel. Gary Younge says the status quo is neither sustainable nor desirable for Israelis or Palestinians. Elliot Jager looks at the history of the Likud party. Tony Karon says the UN is the right place for Middle East diplomacy. Fawaz Turki says there is an intolerant streak in Palestinian society that must be challenged. Musa Keilani says unless something significant happens before September, the UNGA will recognize Palestine. Dan Ephron profiles Pres. Abbas in Newsweek.

Competing Tel Aviv protests show Israelis divided over Palestinian statehood. George Moffett looks at tensions in Jerusalem. Yossi Beilin says the Geneva Accord was a breakthrough model for peace. Sandy Tolan says a change of heart on both sides is necessary. Aaron David Miller says speeches alone cannot change the strategic equation. French and other European leaders reportedly say they are considering recognizing Palestine. The Egyptian government announces plans to ease restrictions on Gaza. Pres. Abbas says UN rejection of Palestinian statehood would be dangerous, and that France backs his unity proposal to Hamas. The UN urges bold steps for peace. Palestinian leaders are deciding where to house the archives of the late Pres. Arafat. Israeli forces destroy warehouses in a Gaza industrial zone. Sefi Rachlevsky accuses PM Netanyahu of turning Israel into “another South frica.” Ha’aretz reviews a new CD by a Palestinian citizen of Israel. Pres. Peres says Israel needs a peace plan. Palestinian officials reassert the importance of the right of return for refugees. The US says the UN should stop actions based on the Goldstone Report, and Richard Falk looks at its future. Several are wounded in mortar fire in Gaza. Israel’s National Infrastructure Minister says Israel should annex what it wants in the West Bank if Palestine is recognized by the UN. The PA complains Israel is slowing mail deliveries to the West Bank. A new housing plan aims to keep Palestinian Christians in Jerusalem. Abbas urges EU to play a more prominent role in Mideast peae

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.

Prominent Israelis call for the establishment of a Palestinian state. The New York Times looks at why Judge Goldstone reconsidered his views on the Gaza war. Hamas arrests suspects in the murder of an Italian activist, and kills one. Pres. Abbas and other PLO officials say Palestinians will approach the UN in September, but say they still have confidence in Pres. Obama. Abbas says he will not accept another armed uprising against Israel. Fatah say they are still open to a compromise with Hamas, but Danny Rubinstein says Hamas isn’t interested. A settler shoots a Palestinian near Nablus. Israel indicts an Australian man on accusations of working with Hamas, and arrests four Palestinian lawyers accused of passing messages to Islamic Jihad. Moth infestations threaten Gaza crops. PA officials say they face a “double fiscal crisis.” Shlomo Avineri says PM Netanyahu should give a speech to Israelis, not Americans, clarifying his vision for the future. Amira Hass says the murder of settlers doesn’t justify collective punishment against Palestinians. International activists seek to protect Palestinian fishermen from the Israeli Navy. Umm el-Fahm boasts a significant art gallery. Jonathan Freedland says peace needs more international supporters. Displaced Palestinian refugees in Lebanon finally get new homes.

Palestinians say if there is no peace agreement by fall they will approach the UN Security Council for recognition, and that this should not result in a decrease in US aid. Israel is under pressure to present peace proposals, or, diplomats say, the Quartet may recognize Palestinian statehood. Palestinian officials say they expect support for statehood from two thirds of UN members, but experts say such a move could backfire. Jewish-American groups debate ways to thwart U.N. recognition of Palestine. Palestinians say they prefer an agreement with Israel. Pres. Abbas, who is visiting Tunis, says the PA will have a new cabinet within a week. Hamas holds a state funeral for a murdered Italian activist, and Charles Glass laments his killing. Palestinian contractors say the PA owes them millions in unpaid bills. A Fatah member dies in Hamas custody. Ha’aretz says Israeli leaders need to think before they speak. The Jerusalem Post interviews the new head of the Israeli Government Press Office. David Newman says the Israeli right has created a crisis of academic freedom. The Forward profiles a new extremely right-wing GOP House member passionately opposed to a two-state solution, and from the left Ahmad Samih Khalidi also dismisses the idea. Yossi Alpher says the peace process is stuck because the parties aren’t interested, and Ghassan Khatib says it has become more process than peace. More prominent international authors join the fight to prevent Israel from deporting a Palestinian bookseller from his own city of Jerusalem.