PM Netanyahu cancels a trip to Washington. NSA Jones says "no decision" has been taken on drafting a US peace plan. Mathias Mossberg and Mark LeVine propose a "parallel state structure" for Israel and the Palestinians. Hamas calls for the seizing of more Israeli soldiers. Pres. Obama waives restrictions on fund transfers to the PA and PLO. Arnaud De Borchgrave analyzes the US and Israeli strategic positions. Rival Palestinian factions clash in Lebanon. Hamas prepares executions in Gaza. Palestinian FM Riak meets with IBSA leaders in Brazil. Refugees say they need more services from UNRWA. PLO officials say the US should pledge to recognize a Palestinian state. Ha'aretz says the replacement of the IDF Chief of Staff gives DM Barak a free hand. Adi Mintz and Uri Dromi both say Netanyahu needs a plan, not more ambiguity. U.S. Treasury officials praise PA efforts to crack down on Hamas funding. The PA says a Ramallah street was named after a Hamas bomb maker by local officials 12 years ago. Asharq Al-Awsat interviews PM Fayyad. Charles Cogan says Israel is not yet desperate enough to seek to break the impasse with Washington by attacking Iran. Robert Satloff defends Dennis Ross following criticisms from Stephen Walt.

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