Pres. Obama meets with Pres. Abbas at the White House, presses for direct negotiations, pledges $400 million in new aid and says there must be a new formula for handling Gaza. Abbas is interviewed by Charlie Rose. Tony Judt interrogates clichés about Israel. Israel eases some aspects of the blockade, but ignores global criticism of the flotilla attack, which Walter Rodgers says has deepened the rift with the United States. Bret Stephens asks if liberals have their own double standard. Turkey is attempting to broker Palestinian reconciliation. A new report outlines how the conflict is damaging Israel's economy. An Israeli government document says the blockade is not about security, but is “economic warfare” against Hamas. The Israeli Foreign Ministry warned the Navy not to raid the flotilla in international waters. Abbas reportedly acknowledges Jewish rights in Israel. Israel is considering expanding PA security control in the occupied territories. A UN Summer school in Gaza opens in spite of threats from Palestinian extremists. Michael Young and Joseph Kechichian worry that core Arab issues are being dominated by Iran and Turkey. The National says Israel's current vulnerability presents opportunities to advance peace.

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