The US continues to work on resuming peace negotiations and extends $150 million in new aid to the PA. The LA Times says Israeli settlement construction must stop. The CSM looks at why PM Netanyahu has restarted the settlement controversy. Time Magazine says Egyptian intelligence helped Israel assassinate a Palestinian extremist. Senator Kerry says Israel may extend the settlement freeze, but FM Lieberman says it won't. Palestinians in the West Bank commemorate the late Pres. Arafat, but Hamas bans and breaks up commemorations in Gaza. Despite a PA ban, Palestinians continue to work on building settlements. Sec. Clinton warns against unilateral steps. Fatah-Hamas dialogue ends without progress. Lieberman says there is no point in negotiating with Syria. Larry Derfner says Israel is wrong about religious sites in the West Bank. The UN says the easing of the blockade has not improved conditions in Gaza. With diplomatic deadlock, Palestinian citizens of Israel become more significant players. The Forward critiques PM Netanyahu's rhetoric on Jerusalem. The National says it's time for the US to show it's an honest broker. Elias Harfoush says Arab states that didn't respond to Pres. Obama's initiatives helped strengthen Netanyahu. The Arab News says Muslims want action on Palestine, not find words, from Obama.