Reuters features an article on Palestinian Prime Minister Salam Fayyad (1). The Washington Times reports on Israel’s plan to build 1,300 new apartments in east Jerusalem (2). Video footage obtained by the BBC of Israeli settlers assaulting a Palestinian family causes controversy (3). Militants from Gaza bombard southern Israel after the home of a Hamas commander is blown up (5). Israel refuses to reopen the Rafah crossing as part of a cease fire deal with Hamas (7).

The Israeli security cabinet votes to continue pursuing cease-fire negotiations with Hamas, though the possibility of military action in Gaza remains on the table (1). Pressure on Israel for a thorough investigation into the April death of a Reuters cameraman in Gaza continues (4). The future of the Israeli parliament is uncertain as more join the call to name a new Prime Minister (5) (10). The newest poll from the Palestinian Center for Policy & Survey Research looks at public attitudes (7). The Fulbright scholarships are in the headlines again as Egypt denies entry to a U.S. scholar (9).

According to UPI Israeli Prime Minister Ehud Olmert may be shelving plans to invade the Gaza strip in favor of continuing truce talks with Hamas, (1) while many voices weigh in on the issue (8) (9) (11) (12). Violence continues in and around Gaza (2) (4) (5). An article from Al-Ayyam daily, translated by ATFP, evaluates the leadership of Palestinian Prime Minister Salam Fayyad (7). The Israeli government votes to broaden the legal definition of counterterrorism, lessening its accountability for IDF actions in the West Bank (10).

New York Times columnist Tom Friedman argues that Israel is here to stay (1). More violence takes place between Israeli and Palestinians in Gaza (2,10). Speculation continues to grow about a large Israeli operation in Gaza (3, 5,6, 8, 11). Palestinians complain about missing tax revenues (12). Y Net reports that Likud may move to dissolve the Knesset next week (7).

Isabel Kershner of the New York Times reports on the fading likelihood of a peace agreement by year’s end (1). Israel seals West Bank and Gaza borders for Jewish holiday (3). Hamas and Fatah met in Senegal over the weekend for talks (4). A recent poll shows support for President Abbas rising (5) (8). Sources within Israel’s Military and Defense establishments downplay the certainty of a Gaza operation (10).

Tony Blair presents his views on the Israeli-Palestinian peace process in the British Parliament (1.) Shlomo Ben-Ami makes the case that an Israel-Syria deal would benefit both sides (3.) King Abdullah of Jordan condemns settlement expansion in the West Bank (6.) Recent comments by Ehud Olmert fuel speculation of a military operation in Gaza (10.)

A New York Times piece reports on Abbas’s call for the resumption of dialogue with Hamas (1.) Nidal al-Mughrabi describes recent violence at the Gaza Border (2.) George Hishmeh reports on the AIPAC Conference held this week (5.) and Al Jazeera follows up on the story of the of the eight Fulbright students from Gaza ( 9.)

In a special report for the New York Times Nicki Bennett assesses the environmental and health problems being caused in Gaza by the dumping of sewage into coastal waters (1). The Israeli Ambassador to London announces that peace talks will continue even if Ehud Olmert is forced to abandon his position as Prime Minister (3). The Israeli army closes the Gaza fuel crossing in response to rocket fire by Palestinian militants (4). Fuel rationing in Gaza forces black market prices to skyrocket (8). Hamas and Israel continue to pursue a cease-fire agreement brokered by Egypt (11).

The recent issue of revoked Fulbright Grants prompts the Israeli Supreme Court to weigh in on the mobility of Palestinian students in Gaza (1). Two articles assess the Middle East policies of the potential U.S. Presidential candidates (2) (4). Three new Palestinian operated police stations are slated to open in the West Bank (5). An ATFP translation of an article in Al-Ayyam Daily looks at the potential political fallout from Ehud Olmert’s corruption scandal (9). A Palestinian pharmaceutical company gets approval to export drugs into the EU (10).

The State Department reverses its decision to revoke Fulbright Grants for students in Gaza on the assurance that Israel will allow them to travel (1). The Israeli Housing Ministry announces plans to increase settlement activity in east Jerusalem (2). Britain’s Foreign Office releases a statement condemning Israeli settlements as illegal (3). Israel releases a prisoner convicted of spying for Hezbollah in exchange for the remains of Israeli soldiers killed in the 2006 war (6) (9). The case against Israeli PM Ehud Olmert continues to gather strength (7).