No compromise is reportedly reached on settlements. Israeli Amb. Michael Oren says Israelis want peace. The CSM looks at Israeli settlements and why Egypt seeks a major role in negotiations. P. Edward Haley offers four reasons not to be cynical. Sec. Clinton endorses Pres. Abbas, PM Netanyahu. Projectiles are launched against southern Israel from Gaza. Ha'aretz says the settlement freeze issue is a test for Netanyahu. Amira Hass says Palestinians have faced 40 years of building freeze. Some Palestinians say their leadership will have to continue with the talks no matter what happens with settlements. Israel is reportedly considering a prisoner release and expanded PA powers in the West Bank. Special Envoy Mitchell says the settlement freeze must be extended. Calev Ben-Dor says negotiations can be structured differently for better results. Gilead Sher says time is running out for a two state solution. The JTA says the Jewish American right is muted in the face of a potential extension of the freeze. Aaron David Miller says Netanyahu is the key to peace. Robert Danin provides an assessment of Palestinian state building efforts.