NEWS: Jordan’s King Abdullah says the failure of the peace process is a grave threat to the international community. A settler is arrested by Israeli authorities for killing a Palestinian near Nablus. Spain’s FM says talks should resume this year. Seven Palestinians are injured, two critically, during a protest against the separation barrier. Israeli officials say PM Netanyahu fears a third intifada. Israeli opposition leaders say Netanyahu has isolated Israel. A US official says cutting funds to the UN would harm Israeli and American interests. The Ford foundation maybe pulling back from funding Israeli initiatives. Hamas is trying to soften its image. Leading Jewish Americans deny Pres. Obama is trying to bully Netanyahu. COMMENTARY: Daoud Kuttab says Palestinians lack a broad strategy for independence. Larry Derfner says the US and Israeli right have become intimate allies. Brian Schaefer says that there are efforts to combat the propaganda of Birthright Israel. Abdul Rahman Al-Rashid says anyone who bans artists to keep ambassadors happy doesn’t understand the Arab spring. George Hishmeh says the US will have to do better in answering Saudi concerns about Palestine. Michael Jansen says UNRWA is the only thing stopping Israeli “stealth ethnic cleansing.” The Arab News says Gaza continues to suffer under an indefensible blockade. Victor Kotsev says Meir Dagan could be the next Ariel Sharon. William Galston asks why peace seems so elusive. Jerome Segal says the UN should reestablish its Special Committee on Palestine. Ori Nir says Netanyahu’s policies that assume peace is not possible are leading Israel to a disaster. Khaled Abu Toameh says Pres. Abbas has no mandate.

NEWS: The Palestinian national unity deal is threatened by the dispute over the future of PM Fayyad, as Hamas and Fatah leaders meet in Cairo. Israel is cracking down on Palestinian nonviolent protests. The UN says the Gaza blockade has strengthened Hamas. Deputy FM Ayalon visits Egypt. Israeli teachers are using unofficial curricula to teach about the Nakba. The UN says almost half of Gazans are unemployed. Occupation forces and Palestinians clash at a Jerusalem holy site. The vacancy at a key position for refugees leaves Palestinians in Lebanon without recourse. A US professor is trying to promote business startups as a vehicle for Israeli-Palestinian reconciliation. COMMENTARY: Richard Cohen says Turki al-Faisal’s warning about US favoritism towards Israel should be heeded. Akiva Eldar says even if Palestinians win UN recognition, that won’t mean much in practice. Gershon Baskin says nobody seems particularly interested in challenging the status quo in Israel and Palestine. Colette Avital says Israel’s only hope for remaining a Jewish, democratic state is to have a Palestinian state alongside it. Ilan Peleg and Dov Waxman look at what Israel needs to do for its Arab minority. The National says Fayyad has been a great Prime Minister but national unity is more important than any individual. Yossi Alpher says Israel should defend its borders but make gestures towards refugees. Ghassan Khatib says justice for the refugees is a crucial part of peace. Carlo Strenger says by going to the UN, Palestinians are seizing control of the situation.