Israeli police arrest an American-born Jewish terrorist accused of killing both Palestinians and Jewish Israelis, while a commentary in Ha'aretz says that if he had confined his attacks simply to Arabs he would not have been caught. Secretary of State Clinton seemingly softens the US stance on an Israeli settlement freeze, while Palestinian Pres. Mahmoud Abbas insists this is a precondition for resumption of negotiations. Reuters analyzes his options, and The National looks at a future without Abbas. The Washington Post says the Jordan Valley could be a sticking point in any future talks. James Wolfensohn, former head of The World Bank, says that the PA's two-year state building plan is "a very smart move." Raghida Dergham lays out a strategy for Palestinians to advance the Goldstone report through the UN General Assembly rather than getting buried in the Security Council. In the Guardian, Hussein Ibish argues that the PA state and institution building plan complements Palestinian diplomacy and constitutes an effective program of practical resistance to the occupation.

The New York Times looks at how Palestinian women's soccer teams are fighting for both gender equality and national independence. The Boston Globe calls on Israel to stop provocative excavations in Jerusalem. UN Secretary-General Ban Ki-moon says the city must serve as a capital for both states and calls for reconstruction in Gaza. Numerous articles examine the significance of the first annual conference of the new pro-peace, pro-Israel organization J Street. Israeli Vice Prime Minister Moshe Ya'alon says he will avoid visiting Europe for fear of arrest, and Israel's ambassador to the UN says the Goldstone report will remain a problem even if an internal investigation is launched. Seth Freeman argues that greater cooperation between the IDF and extremist settlers shows the growth of religious-nationalist politics in Israel.