NEWS: PM Fayyad announces new economic measures in response to Palestinian protests at the rising cost of living in the occupied West Bank. The protests have focused on the PA leadership, and are beginning to turn violent, but no injuries are reported yet. Palestinian leaders are looking for ways of improving the economic situation. Pres. Abbas says Israeli restrictions are impeding an effective response to the economic crisis. The PA says it is working to facilitate the creation of an industrial zone in Jenin. Palestinians say Israel intends to confiscate land near Nablus for a new settler bypass road. Israeli officials complain about US policy towards Iran. PM Netanyahu suggests the United States has no right to restrain Israel from attacking Iran. UN officials criticize both the blockade of Gaza and rocket attacks against Israel. Israel is creating a new police unit to combat “price tag” violence against Palestinians. Hamas says it has agreed to create a joint security committee with Egypt. Israel instructs its diplomats to raise the issue of Jewish refugees from the Arab world in Israel to “counteract” the Palestinian refugee issue. India reiterates its support for Palestinian independence. Israeli and Palestinian women launch a joint business in handicrafts. The tax exempt status of the Zionist Organization of America has reportedly been revoked. COMMENTARY: Akiva Eldar says a new study demonstrates that Palestinian citizens of Israel and Palestinians living under Israeli occupation have developed separate narratives, and, in a separate column, he argues that those who have given up on the two-state solution are surrendering to defeatism. The Jerusalem Post claims that Palestinians and other Arabs are not only responsible for the Palestinian refugee problem, but also for Jewish refugees in Israel from the Arab world. Sophie Claudet and Saleh Jadallah doubt Pres. Morsy will adopt substantially new policies towards Gaza.

NEWS: Palestinian protests against high prices continue. Palestinian taxi drivers clog roads as part of the protests. PM Fayyad says he is ready to resign if need be. Hamas says it will pursue Salafists in Gaza from “street to street.” Seven more Palestinians are killed in Syrian government shelling of the Yarmouk refugee camp. A Palestinian man is assaulted in Jerusalem in another suspected hate attack. House Intelligence Committee Chair Rogers confirms the US-Israel dispute over Iran policy. DM Barak says Israel reserves the right to take action on its own against Iran. A new poll suggests that most Jewish Israelis are optimistic about the future but Palestinian citizens are concerned. Pres. Morsy meets with Pres. Abbas. An Israeli oil company is asking the PA for permission to drill in the occupied territories. PM Netanyahu and US Amb. Shapiro reportedly had a harsh exchange of views on Iran last month. COMMENTARY: Hussein Ibish argues that the new Israeli campaign on Jewish refugees and migrants to Israel from the Arab world is cynical and unhelpful. Ahmad Majdoubeh says if there is a "Palestinian Spring" at hand, it's because of the divisions between Fatah and Hamas. Dominique Moisi says Palestinian and Jewish citizens have found a way to work together in medicine. George Hishmeh says the United States should work to build a nuclear-free Middle East. Ithamar Handelman-Smith says all of Israeli society is responsible for the attempted lynching of a Palestinian in Jerusalem. Khaled Diab says the plight of Bedouin children represents the threat Israel's occupation poses to all Palestinian students. Yoaz Hendel says the United States is naturally placing its own interests ahead of its friendship with Israel. Stuart Eizenstat and Lester Crown both say Pres. Obama has demonstrated his commitment to Israel's security "in countless ways." Eshkol Nevo says Jewish Israeli "price tag" violence is not just a disgrace, it's a national security threat. Chris McGreal says the DNC reversal on Jerusalem demonstrates what a low priority Middle East peace talks now are for the United States. Yossi Verter says Barak now opposes an attack against Iran. Eyal Chowers says the 1937 Peel Commission report still has much relevance for Israel and the Palestinians. Henry Siegman says Israel has destroyed the two-state solution and only serious Palestinian masures can revive it.