The NYT says Israel is right to cooperate with the UN investigation into the flotilla attack. Rocket attacks show how militants could use Sinai. Andy Zelleke and Robert Dujarric say the price of an Israeli attack on Iran may be a Palestinian state. Occupation forces shoot a Palestinian worker in Gaza. The PA says growth is dependent on international donors. Three Lebanese soldiers and a journalist are killed by Israeli troops at the border. Israel approves 40 new settlement apartments in occupied East Jerusalem. Pres. Abbas declines to set a date for direct talks. PM Netanyahu says he made no commitments to the US on direct talks. Palestinian activists ask female protesters to dress modestly. Americans for Peace Now launches a video campaign against settlement construction. Building in Gaza is focusing more on recreation than reconstruction. Israel allows a convoy of 250 trucks into Gaza. Gershon Baskin says hope must continue for peace. The last Palestinian kaffiyeh factory struggles to survive. Daphna Baram says liberal Israelis may soon face prosecution. Leslie Susser says “one-state” proposals from the Israeli right are a ploy to prevent ending the occupation. Joseph Mayton says Gaza's plight also presents opportunities.

The NYT says Israel is right to cooperate with the UN investigation into the flotilla attack. Rocket attacks show how militants could use Sinai. Andy Zelleke and Robert Dujarric say the price of an Israeli attack on Iran may be a Palestinian state. Occupation forces shoot a Palestinian worker in Gaza. The PA says growth is dependent on international donors. Three Lebanese soldiers and a journalist are killed by Israeli troops at the border. Israel approves 40 new settlement apartments in occupied East Jerusalem. Pres. Abbas declines to set a date for direct talks. PM Netanyahu says he made no commitments to the US on direct talks. Palestinian activists ask female protesters to dress modestly. Americans for Peace Now launches a video campaign against settlement construction. Building in Gaza is focusing more on recreation than reconstruction. Israel allows a convoy of 250 trucks into Gaza. Gershon Baskin says hope must continue for peace. The last Palestinian kaffiyeh factory struggles to survive. Daphna Baram says liberal Israelis may soon face prosecution. Leslie Susser says “one-state” proposals from the Israeli right are a ploy to prevent ending the occupation. Joseph Mayton says Gaza's plight also presents opportunities.