NEWS: PM Fayyad reshuffles the PA cabinet. US Amb. to Israel Shapiro says the US is prepared to attack Iranian nuclear facilities if it decides to, although it prefers to continue negotiations. Questions begin to emerge about how much effect Israel's new coalition will have on moving its policies towards the political center. In spite of the agreement between Israel and Palestinian prisoners, seven still remain on hunger strike. Occupation forces arrest a Palestinian TV producer and confiscate his equipment. Seven Palestinians are injured by Israeli artillery fire in Gaza. The PA says it will hold municipal elections in the West Bank even without the cooperation of Hamas in Gaza. The Israeli military demolishes two small “unauthorized” settlement outposts. The Independent profiles the plight of Palestinian villagers in a border area designated as a military zone by Israel. According to an annual BBC poll, Israel's negative international image continues to decline, outstripped only by Iran and Pakistan, and coming in jointly third with North Korea. COMMENTARY: Ari Shavit says Palestinians must recognize the Jewish narrative and grand catastrophe in order for Israelis to reciprocate. Ha'aretz says Israel must change its attitude towards Palestinian prisoners. Roni Schocken says Israel's “Nakba Law” is an attack on human rights. Jonathan Rosen says that over time the question of Palestinian refugee return has become more an abstract principle than a specified demand. Jessica Montell says Israel must find a new way of dealing with Palestinian “administrative detainees.” Bernard Avishai says that by insisting on a distinction between Jewish nationality and Israeli citizenship, Israel has yet to fully recognize itself. Jamal Muqbel says peace seems farther off than ever. Amr Ezzat recounts his experiences attending a recent literary festival in Gaza. Aaron David Miller says Israel's plummeting international image isn't primarily due to a campaign of delegitimization, but its own policies and actions. Hussein Ibish asks if the new Israeli coalition government is really going to break from the hard-line positions, especially on settlement outposts, of the previous one.