The New York Times looks at the costs and benefits of the US engagement with Middle East peace. PM Netanyahu is considering a US offer on settlements, but may want more concessions. The Washington Post looks at the role of Dennis Ross. Rabbis from nearby settlements replace Korans at a torched West Bank mosque. Palestinian police run soccer clinics. Hamas militants threaten the PA leadership. Farmers complain they have not been compensated by the PA as promised. International activists help Gazans harvest olives. Amira Hass says Israel "is punishing Palestinians shamelessly." An imam from Nazareth is arrested on various charges. 350 new settler housing units are under construction. Palestinians say the US is working on a three-month settlement freeze extension. Shlomo Ben-Ami says the Palestinian leadership is facing a crisis of legitimacy. Former president Clinton says peace would be a serious blow to terrorism.

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