President Obama announces that he will travel to Egypt next month to deliver his address to the world's Muslims (1). The New York Times reports on how Israel is using park development projects to fortify its claims to Jerusalem (2). Pope Benedict XVI continues his Mideast visit, and announces his support for peace based on two states (3) (12) (16). In an interview with the Times of London, Jordan's King Abdullah warns of potential Mideast warfare if movement towards a peace agreement does not begin this year (5). A report by the UN Office for Coordination on Humanitarian Affairs finds that Israeli settlements and outposts have reduced the available land for Palestinians in Bethlehem to 13% (8). The UN Security Council is set to hold talks today on reviving the Mideast peace process (9). In a Damascus press conference exiled Hamas leader Khaled Meshal rejects the idea of a peace based on two states (10).

Robert Mackey assess the challenge posed by established Israeli settlements to the creation of a viable Palestinian state in the West Bank (1), while Haaretz reports that settlement expansion has recently seen its most acceleration in five years (13). Treasury Department official Michael Rosen announces that the federal government may revise its voluntary guidelines for donating overseas, and suggests American Charities for Palestine as an alternative model (2). The Obama administration reiterates its determination for peace based on two states at the annual AIPAC conference (3), while German chancellor Angela Merkel states that there is no alternative to an agreement between two states (7). Arab leaders meet in Cairo to formulate a unified approach to the Mideast peace process (4).