Outgoing Israeli Prime Minister Ehud Olmert reiterates that Israel must be willing to cede parts of Jerusalem if a peace deal is to be reached (1). Meanwhile, Prime Ministerial candidate and current Kadima party head Tzipi Livni seeks to distance herself from his strong language (8). The continued fuel shortage in Gaza forces the closure of the main power station (2). In The Guardian, Rory McCarthy reports on the recent Israeli supreme court decision to evict a Palestinian couple from the east Jerusalem home they have been living in for 52 years (4). Palestinian President Mahmoud Abbas criticizes Hamas at a memorial rally for the late Yasser Arafat (5).