NEWS: The torching of a mosque in northern Israel prompts fears of clashes between Palestinian citizens of Israel and the authorities, and may be the latest example of “price tag” violence by Israeli extremists. The Obama administration is looking ways to unblock $200 million for Palestinian development projects being withheld by Congress. Defense Secretary Panetta criticizes the congressional action. Palestinian public employees will receive full salaries in September. Noted Palestinian poet Taha Muhammad Ali passes away. A major leader of the settlement movement also dies. Republican presidential candidate Rick Perry is backed by some Jewish extremists. Nigeria's Foreign Ministry says it has not decided how they would vote in the Security Council on a Palestinian membership resolution. PM Fayyad says the West Bank separation barrier will fall like the Berlin wall. COMMENTARY: Akiva Eldar says PM Netanyahu is counting on no one reading the fine print of the Quartet statement he has accepted. Natasha Mozgovaya says Washington's stance on peace is now murky. Hagai Segal says only deranged people could think burning a mosque is a good idea. Gershon Baskin says both parties have said “yes, but” to the Quartet statement. Yaakov Katz says Jewish terrorism in Israel is gaining steam. Logan Bayroff says J Street U is pioneering a new path for peace on US campuses. Zuheir Kseibati says the Palestinians are not only facing an American veto at the UN, but also an Iranian one on the ground. Steve Hochstadt questions whether embracing the extreme Christian right makes any sense for Jewish Americans. Herb Keinon asks why Netanyahu approved the new settlement project in occupied East Jerusalem.

News: In a suspected “price tag” attack, a mosque in northern Israel is burned down. Defense Secretary Panetta says Israel is becoming increasingly isolated, and that Congress is making a big mistake withholding aid from the PA. Palestinian leaders say the cut in aid could be devastating. The Israeli government and the Palestinian leadership have both accepted the Quartet statement, but with reservations. Israeli ministers say they will demand changes to the document. The EU reportedly says it will not cut aid to the PA. Pres. Abbas will visit Colombia to discuss its position on the UN initiative. Abbas' aides say he's planning to propose early presidential and parliamentary elections. The West Bank is enjoying boom in construction in spite of Israeli restrictions. US Republicans have become almost entirely and unconditionally pro-Israel. The Syrian regime angrily accuses Hamas of funding the opposition. Commentary: ATFP President Ziad Asali explains the raison d'être of the American Task Force on Palestine. Raghida Dergham interviews Abbas, and says a new regional order is emerging in the UN. Akiva Eldar says Israel and the Palestinians must accept each other's legitimacy. Bradley Burston says the U.S. Congress could kill the two-state solution by cutting funds to the PA. Avi Yesawich says extremist rabbis are using religion as a cover for radical politics. Renee Ghert-Zand looks at the relationship between Palestinian identity and their national cuisine. Former Australian PM Fraser says it's time for the West to recognize Palestine. Sari Nusseibeh explains Palestinian objections to recognizing Israel as a “Jewish state.” Hussein Ibish looks at five options Palestinians have now that they've submitted their UN membership application.