NEWS: PM Netanyahu is reportedly considering legislation to bypass the Supreme Court-ordered demolition of an “unauthorized” settlement outpost built on privately owned Palestinian land. The future of a Jewish settlement in occupied East Jerusalem appears to hinge on documents possessed by a Palestinian taxi driver. Pres. Abbas again warns Israel about the consequences of the death of any hunger striking prisoner, as one is reportedly near death. The PA says it has arrested suspects in the murder of the late Governor of Jenin. Hamas apologizes for shutting down a literary festival in Gaza. An Israeli city has reportedly banned girls from singing at an upcoming conference. In a telephone conversation, Sec. Clinton urges Netanyahu to use his new huge coalition to advance peace. Palestinians show no enthusiasm for Israel's new coalition. Ramallah’s Ashtar Theater is performing Richard II at an international Shakespeare Festival in London. COMMENTARY: Reuters interviews Hamas leader Ismail Haniyeh. Charles Krauthammer says the new coalition means Israel is ready for war with Iran, but Nadav Eyal says Israel is probably bluffing. Natan Sachs says the revolt against Netanyahu over Iran from within Israel's security establishment should be a source of deep concern, not reassurance. Ahmed Rashid says any Israeli attack will deliver Iran massive support in the Muslim world it otherwise cannot attract. Niv Elis says his new coalition shows Netanyahu's centrist orientation, but Nir Eisikovits wonders if he will use his increased power to continue to pursue conflict with Iran or to help Israel, including by seeking peace with the Palestinians. Uri Savir says that for Israel, 2012 might be the year of cynical political decisions but 2013 must be the year of momentous national decisions. Lara Friedman says Israeli Amb. Oren correctly defined what it means to be “pro-Israel” in a recent speech. Dov Waxman says Palestinian citizens of Israel should not be forced to prove their loyalty through “National Service.”