NEWS: Israel launches fresh air strikes against Gaza following an exchange of fire with militants. Lebanon says Israeli warplanes circled its airspace for an hour. Israel deploys a missile defense system after shooting down a suspected drone. Iran says the incident highlights Israel's vulnerability. Violent Israeli settlers are again disrupting the olive picking season in the occupied West Bank. Three settlers are arrested for assaulting undercover Israeli police officers posing as Palestinians. Prominent Israelis attend an event in honor of a settler about to be incarcerated for abusing a Palestinian teenager. Hamas persists in boycotting upcoming local West Bank elections. The PA says it cannot yet set a date for paying public employees' September salaries. Palestinian officials say a renewed UN bid is the only way to counter Israeli settlement expansion. The Media Line profiles a Palestinian businessman accused of fraud who has fled to Jordan. Young Israelis are increasingly moving to the occupied Golan Heights. COMMENTARY: Republican candidate Mitt Romney outlines his vision of Middle East policy in a speech at VMI. Israelis and Palestinians react to Romney's address. Chemi Shalev says the speech sounds like former Pres. George W. Bush but reads like Pres. Obama. The Jerusalem Post says it won't back either American candidate. David Rothkopf says Israel and the US are coming close to an agreement on how an attack against Iran would be structured. Oudeh Basharat says Israel's new campaign on Jewish refugees and migrants from the Arab world is designed to thwart Palestinian claims. The Daily Star says the anniversary of the 1973 war with Israel shows how much the Arab world has abandoned its ideals. Jacob Silverman looks at the differences in perspective between Norman Finkelstein and Anna Baltzer as a generational divide.Kate Gould says unconditional US military aid to Israel fuels violence with the Palestinians. Ibrahim Sharqieh says Obama must stand up to PM Netanyahu on Israeli settler violence. Linda Gradstein says an Israel-Iran war is not on the horizon. Hussein Ibish says the ongoing exchange of missile attacks with Israel illustrates much about changes taking place within Hamas.