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The Israeli Cabinet will consider an investigation into allegations in the Goldstone report. A Palestinian cooperative trades olive oil for foreign cash in an effort to sustain a wider Palestinian economy as violent attacks by extremist settlers increase. Al-Jazeera airs an offensive parody of the Palestinian national anthem, angering Palestinians. A Palestinian poll says President Abbas could regain lost support before scheduled elections in 2010. Commentaries in Gulf News, Arab News and Al Hayat evaluate Pres. Obama’s positions on peace and the Goldstone report. In the Nation, Adam Horowitz and Phillip Weiss evaluate shifting attitudes among Jewish Americans regarding Israel.
The UN Human Rights Council endorses the Goldstone report putting diplomatic pressure on Israel, but Russia joins the US in asserting that it will not permit a debate in the Security Council. The controversy has damaged the popularity of President Abbas, who is now only slightly more popular than Hamas leader Hanniyeh according to a new poll. Asharq Al-Awsat reports Abbas may be considering calling for elections in January in spite of objections from Hamas. The BBC profiles Hamas-Fatah rivalry in Qalqilya. Prime Minister Netanyahu reportedly says that an agreement has been reached with the United States on settlements. Patrick Seale argues that Israel should understand that President Obama’s patience is not endless. Hussein Ibish outlines what would be at stake for Israel and the Palestinians in a third intifada.
The PA pushes a strongly worded UN resolution condemning Israel for alleged war crimes committed in Gaza and provocative steps in Jerusalem, but Ha’aretz argues that the more extreme the resolution is, the better it is for Israel. Prime Minister Fayyad expresses concern that Israel is contemplating a Palestinian “Mickey Mouse state.” 3 Palestinians are wounded in an Israeli air strike on Gaza tunnels. Reports suggest that Fatah officials may already have signed an Egyptian brokered national reconciliation deal. The JTA asks whether or not Israeli ambassador Oren will attend the upcoming J Street conference. In the Washington Post, Former Israeli Defense Minister Ephraim Sneh argues that PM Fayyad’s plan for building de facto Palestinian statehood could bring about “real progress toward a two-state solution.”
NOTE: due to Thursday's ATFP Gala, the ATFP world news roundup will resume on Monday, October 19.

The Palestine Investment Fund launches a $220 million housing project in the occupied territories. Israel is considering restricting travel by senior officials fearing arrest as a consequence of the Goldstone report. Hamas claims that it always supported the report and that the organization is "praised" in it. UN Secretary-General Ban Ki-moon supports moves by Pres. Abbas to reopen debate on the report in the UN Human Rights Council. US reportedly tells Egypt that Palestinian reconciliation would undermine negotiations with Israel. Kadima leader Tzipi Livni accuses Prime Minister Netanyahu of "humiliating" the Palestinians, while Netanyahu says combating the Goldstone report is Israel's main priority. An Israeli pornographer uses sex to "promote coexistence." An Israeli embassy spokesman says that J Street "could impair Israel's interests." ATFP President Ziad Asali says Netanyahu's commitment to peace will be tested in coming months.
President Abbas gives a major address pledging to resume efforts to push the Goldstone report in multilateral institutions and reiterating Palestinian conditions for peace talks. Israeli and Palestinian leaders welcome Pres. Obama's Nobel Peace Prize. Special Envoy George Mitchell reiterates that a Palestinian state must be "contiguous."Israeli forces reportedly demolished a Palestinian home in occupied East Jerusalem. News reports differ as to whether or not Palestinian factions are set to sign an Egyptian brokered reconciliation agreement in coming days, and Hamas reiterates its opposition to new elections. Hundreds of lawsuits have been filed against Israeli officials around the world, Turkey excludes Israel from planned military joint exercises, and Israel has warned Britain against any show of support for the Goldstone report.
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