NEWS: The fallout from the Israeli election, especially for PM Netanyahu, is being assessed. Many believe Netanyahu will be forced to try to form a centrist coalition, and some reports indicate he may have offered political newcomer Lapid a choice between the ministries of foreign affairs or finance. The election again demonstrates the alienation of Palestinian citizens of Israel from its political system, although their 56% turnout was bigger than expected. Israel says it will boycott a meeting of the UN Human Rights Council on its own record. Secretary of State-designate Kerry says it would be "disastrous" to fail to reach a two-state peace agreement. Jordan's King Abdullah says, if no progress is made, a two-state solution will only be viable for the duration of Pres. Obama second term. Hamas organizes paramilitary training for teenagers in Gaza. Palestinian protesters reconstruct a protest tent city in northwest Jerusalem. PA finance minister Qassis says the government's fiscal crisis is "structural." Israeli security services report that in 2012, for the first time since 1973, no Israeli was killed in any "terror attack" in the occupied West Bank. COMMENTARY: Alon Idan explains how, through a process of radicalization, extreme Zionists actually become anti-Zionists. Gideon Levy and Alex Levac trace the details of the killing of a Palestinian youth by occupation soldiers. Ben Caspit says, at least in terms of image, Lapid seems to be "the perfect Israeli." Michael Cohen says the Israeli election leaves Obama little to work with on pursuing a two-state solution. J.J. Goldberg says Lapid faces as many political challenges as Netanyahu. George Hishmeh says if Obama doesn't prioritize it, a two-state solution may become impossible. David Gardner says the annexationist right in Israel has been strengthened. Hassan Barari says Netanyahu is weakened and left with a precarious balancing act. Meir Javedanfar says the election won't affect Israel's Iran policies. Murat Yetkin says a new, more centrist, Israeli government could repair relations with Turkey.

NEWS: The underperformance of PM Netanyahu's factions in the Israeli elections is seen as a rebuke by voters. Political novice Lapid is widely viewed as the big winner in the vote, with 19 seats, and as the new kingmaker. Palestinians say they are planning new outreach to the Israeli public, and say any new Israeli government should be evaluated according to its policies. A 21-year-old Palestinian woman is shot and killed by occupation forces near Hebron, and a teenage girl dies of her wounds in Bethlehem. Hamas officials say they agree Pres. Abbas can head a new unity government. Abbas says he is willing to talk to any Israeli government that recognizes Palestinian statehood. COMMENTARY: Tom Friedman suggests a series of steps, including on Israeli-Palestinian issues, for the incoming Secretary of State. Crispian Balmer thinks the close vote in Israel may constrain Netanyahu's foreign policy options, assuming he remains PM. Jack Khoury says Israel's Arab citizens can't help but feel they've lost an opportunity in this election. Amos Harel says Israel's new government will probably have two priorities: the role of the ultra-Orthodox in society and Iran. Aluf Benn explains why, as he predicted, political newcomer Lapid outperformed expectations while Netanyahu underperformed them. Jeffrey Goldberg asks if the results can help the peace process. Raja Shehadeh says the election means little for most Palestinians. Ron Kampeas says Pres. Obama is likely to see more Israeli support for a two-state solution in the results. The National says the vote shows an ambivalent Israeli public, which offers opportunities for the Palestinians. Faisal Al Yafai worries that Israelis and Palestinians are too divided internally to make agreements with each other. Zvika Krieger says Israel's next election will be more important than this one.