NEWS: DM Barak says Israel and the US disagree on the timetable for dealing with Iran's nuclear program. The PA says it has spent $7 billion on Gaza since the split with Hamas in 2007. PM Fayyad urges donors to fund a desalinization plant to alleviate the water crisis in Gaza. Pres. Abbas and Sec. Clinton discuss the upcoming Quartet meeting. The power crisis in Gaza is exacerbated by tensions with Egypt. Israel finalizes a deal with Germany for a 6th Dolphin submarine. The UK Advertising Standards Authority insists Israeli representations of its borders adhere to the 1967 lines. The Egyptian military is resisting Muslim Brotherhood calls to open the border with Gaza, as Egypt's relations with Hamas remain tense. A new EU report says Israel is “turning a blind eye” to settler violence against Palestinians, particularly farmers. COMMENTARY: Ha'aretz says the settlement project is leading to Israel's self-destruction. Gideon Levy says Israel is not succeeding in playing the eternal victim. Ari Shavit says Israel isn't bluffing about a possible attack on Iranian nuclear facilities. Douglas Bloomfield says PM Netanyahu fears that a 2nd-term Pres. Obama might not be “so easily bullied.” Edward Stourton asks if an Israeli attack on Iran is inevitable or preventable. J.J. Goldberg says recent remarks by EU foreign policy chief Ashton have been completely misunderstood and misrepresented. George Hishmeh says Americans are becoming more aware of religious extremism and racism in Israel. The Daily Star says the Toulouse killer is only the latest terrorist to cynically misappropriate the Palestinian cause. Aaron David Miller says it's ridiculous to claim that Israel controls Washington. Hussein Ibish says Jewish Americans and all those interested in peace should boycott settlement goods.

NEWS: A classified US wargame reportedly suggests an Israeli attack on Iran could draw the United States into a wider regional conflict, possibly including hundreds of American deaths. Another hunger striking Palestinian prisoner is said to be in mortal danger. PLO officials say they are ready to resume talks with Israel. Israel says it is making several improvements to the quality of life for Palestinians living under occupation. Fatah officials denounce Israel's policy of assassinations. Palestinians are to ask for a UN investigation of settler abuses. The EU pledges €35 million for a Palestinian infrastructure project. Israeli officials are set to claim that the Palestinian economy is not ready for independence. Pres. Obama has a telephone conversation with Pres. Abbas. Israel continues to deny Palestinians access to their own water. Israel's military is accused of abusing Palestinian children. COMMENTARY: ATFP President Ziad Asali suggests practical steps that can be taken by all sides during the political interregnum on Israeli-Palestinian peace. Richard Cohen says Israel needs to buy time on Iran. Sefi Rachlevsky says Iran has started a Cold War between the United States and Israel. Yakir Elkariv says an Israeli attack on Iran would reveal a death wish. Navi Pillay says indiscriminate shooting of rockets between Israel and Gaza is illegal and unjustifiable. Gershon Baskin says Israel must not cut off electricity to the Palestinians. Donald Macintyre says Einstein considered the problem of how Jews and Arabs could live together in Palestine and could not find a solution. Yossi Alpher says violence has not only failed, it has undermined a two-state solution. Ghassan Khatib says violence is only increasing the Palestinian determination to end the occupation. Ephraim Sneh says the Israeli-Palestinian conflict has no military solution. Bernard Avishai says informed Chinese are predicting that the occupation will ultimately turn global opinion against Israel.