NEWS: The Israeli military has closed an investigation into the killing of 21 members of a family in Gaza in 2009 and says no charges will be filed regarding the tragedy. Hamas denies that Khaled Meshal and the Politburo have been stripped of control of the organization's budget and paramilitary operations. A “blame-game” is hampering a solution to the Gaza energy crisis. Palestinians say new Israeli settlement plans threaten the Palestinian tourism industry. The US is reportedly pressuring the UN Human Rights Commissioner to postpone an investigation into Israeli settlement activity. Speaker Rivlin says the Knesset is likely to be desolved next week. Arye Deri may return to a senior position in the ultra-Orthodox Shas party. Abbas and PM Fayyad separately send condolence letters to PM Netanyahu upon the death of his father. A Palestinian TV station is sued as the PA media crackdown continues. Hezbollah may be stockpiling drones in anticipation of possible conflict with Israel. COMMENTARY: Alon Ben-Meir says Israel's continued independence depends on Palestinian independence. Hadani Ditmars explains how traveling overseas can easily cost Palestinian Jerusalemites their residency permits. Attila Somfalvi says Tzipi Livni's career is not over. Bruce Acks says most Israelis and Palestinians could find a peace agreement if their leaders would permit them the chance. Susan Hattis Rolef says the epidemic of settlement outposts challenges both Israel's rule of law and the prospects for peace with the Palestinians. Tony Karon says Netanyahu's push for a war with Iran is losing momentum. The National says hunger striking Palestinian prisoners are losing world attention, but Osama Al Sharif says the Arab world and others should rally to their cause. Gershom Gorenberg looks at the legacy of Netanyahu's recently deceased extremist father. Hussein Ibish says the PA must stop censoring the Internet.

NEWS: PM Netanyahu calls for early elections on September 4, in which he is expected to be returned to office. Palestinian journalists are fighting back against PA moves to censor them in the West Bank. Palestinian refugees reconnect with their families through Facebook. Israel's Supreme Court seems unsympathetic to government requests to delay the court-ordered demolition of a large “unauthorized” settlement outpost. The High Court also denies appeals for release by two hunger-striking Palestinian prisoners being held without charge, as the protest action becomes more widespread. Israel's internal security force recommends the demolition of the homes of two Palestinians convicted of murder. A Fatah official says PM Fayyad will likely remain prime minister even if there is a cabinet reshuffle. Israeli soldiers testify they threw stones at other occupation forces while posing as Palestinians during protests in the West Bank. Palestinian policewomen are breaking gender stereotypes. Pres. Abbas is reportedly trying to recover PLO intelligence documents from the Arafat era from Tunis. Fatah officials say the latest reconciliation talks with Hamas in Cairo yielded no results. COMMENTARY: Ben Birnbaum profiles Fayyad. Akiva Eldar says Pres. Obama's rhetoric will help Netanyahu get reelected in September. Smadar Shir says releasing a conspirator in the assassination of the late PM Rabin invites the next assassination. Uri Avnery says there is a virtual uprising of former military and security officials against Netanyahu, but he'll probably be reelected anyway. Libby Lenkinski says even if Palestinian prisoners under “administrative detention” were to get Israel's occupation version of “due process,” they wouldn't get fair trials anyway. Shay Fogelman says Israel should agree to the prisoners' demands and end “administrative detention.” Yossi Alpher says neither the Israelis nor the Palestinian leaderships seem to have a viable strategy for moving forward. Ghassan Khatib says all those who care about the future of Jerusalem and a two-state solution must act.