Israel is expanding a settlement near Nablus. Israeli police and Palestinian citizens clash over a right-wing rally. Palestinian MKs are among the injured. A Palestinian man is killed in a Gaza explosion. Senior Egyptian officials will visit the West Bank. Jordan's PM says resolving the Palestine issue is key to fighting terrorism. Amira Hass says Israel's policies only strengthen Hamas. Ha'aretz asks what a ³Jewish state² really means. Israeli officials row over cutting off water to Bedouins. The UN demands Israel curb settler attacks. An influential Israeli think tank backs the Arab Peace Initiative. Settler leaders complain of a ³silent building freeze.² As settlement construction resumes, some Palestinian laborers go back to work. Jonathan Freedland says the administration needs a new Middle East approach. The JTA says Israel does not know how to respond to Palestinian talk of international recognition for statehood. Ghassan Khatib explains why Palestinians object to PM Netanyahu's demands for recognition of Israel as a Jewish state, but Yossi Alpher finds the positions of both parties problematic.