Tensions continue over a proposed Israeli settlement freeze (1) (14). Israel pledges to compensate the UN for damage caused by shelling its facilities during the Gaza war (2). Israel’s Defense Minister approves the transfer of weapons to the Palestinian Security Forces in the West Bank (3). Israeli authorities plan to deport the activists who attempted to break the naval blockade of Gaza last week (4). Israeli President Shimon Peres is set to meet with Egyptian President Hosni Mubarak in Cairo this week (5). Hamas and Fatah trade accusations of misconduct (7) (8). At a conference in Aspen this weekend, Palestinian Prime Minister Salam Fayyad says that Jews would be welcome as full citizens of a future Palestinian state (10).