Fatah and Hamas provide different accounts and interpretations of a national unity deal. Pres. Abbas tries to reassure Israel and the West. PM Netanyahu is taking full rhetorical advantage of the development, as Israelis express concern, but Ha'aretz says he may have jumped the gun. Regional unrest may have motivated the agreement. Egypt invites the parties to a signing ceremony next week. Jordan and the Arab League welcome the deal. The US says aid to the PA will continue for the meanwhile, but the deal may pose several long-term risks. The White House Chief of Staff may have left the door open for the US to continue to work with a Palestinian unity government. Herb Keinon suggests ways Israel can use the development. The National and the Arab News both say Palestinian unity calls Israel's bluff. Hamas is reportedly insisting on the removal of PM Fayyad. Egyptian policy opens to Hamas and Iran. Aaron David Miller says fear of failure, not of the Israel lobby, is holding Pres. Obama back on diplomatic initiatives. Abbas meets leaders of the Israeli Peace initiative. Israeli artillery injures four Palestinians in Gaza. Israeli and Palestinian security forces are continuing coordination in the West Bank. Ha'aretz says Israel should recognize a Palestinian state. Abbas says the quest for a peace agreement will continue. The Jerusalem Post says Abbas is no peace partner. Bereaved Palestinian physician Izzeldin Abuelaish tours the US with a message of forgiveness. The Forward says the US must take the lead on peace.

Fatah and Hamas announced the outlines of a possible national reconciliation agreement. The US may be reconsidering aid to Palestinians as a consequence, key members of Congress warn. The White House says any new Palestinian government must renounce terrorism and recognize Israel. Jackson Diehl says if the agreement is implemented it will mean the Palestinians are walking away from the peace process. Pres. Abbas' office dismisses criticism from PM Netanyahu. FM Lieberman says Israel will not negotiate with a unity government, and a Hamas leader says negotiations will not be conducted by a new government. Israel launches a nationwide war drill. Israel worries about the future of security cooperation with the PA. Ha'aretz says the agreement may work to PM Netanyahu's advantage. Aluf Benn concludes Hamas has taken over the Palestinian movement. Israel prepares to block the next Gaza flotilla. Israel anticipates and plans for political changes in Syria. Hamas disperses a pro-unity rally in Gaza. Abbas reiterates conditions for resuming negotiations with Israel. Israeli forces arrest settlers trying to enter a holy site in the occupied territories which was the scene of a recent shooting. Larry Derfner criticizes Israel's treatment of Arab air travelers. Daoud Kuttab says chances for the birth of a Palestinian state this fall are about 50-50.