NEWS: Israelis are increasingly concerned about the potential fallout from remarks by PM Netanyahu. Israel hints it may continue to press the US over Iran. Israel distances itself from a film that mocks the Prophet Muhammad. The Israeli-Palestinian conflict is being depicted in a number of films at the Toronto Film Festival. Conditions are worsening for Palestinian farmers in the occupied West Bank. Israel increases its military budget. Hamas leader Hanniyeh postpones a visit to Cairo. Palestinian prisoners in Israel launch a hunger strike for the release of long-serving fellow prisoners. Few candidates are being registered for upcoming local West Bank elections. Pres. Abbas offers condolences to the United States following the murder of American diplomats in Libya. Palestinian officials say Israel has seized millions of shekels of Palestinian tax revenue. Nature and Parks Authority issues the first official Israeli objection to the route of the separation barrier, citing environmental concerns. FM Lieberman launches a series of insults against Abbas. COMMENTARY: David Remnick Crispian Balmer says Netanyahu risks overplaying his hand in his dispute with the US over Iran. Daniel Kurtzer says that the US and Israel need diplomacy, not recriminations. Ari Shavit says the hope offered by PM Fayyad's policies is fading. Douglas Bloomfield says the next American president must work with Arab states to revive the peace process. George Hishmeh says Americans need to understand the Palestinian predicament.