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.

A rocket, probably aimed at Israel, lands in Jordan killing one man and injuring several. Efraim Karsh argues that Palestinians should forget about Arab support. Some analysts say recent rocket attacks are an effort by Hamas to derail peace talks, but others say it has an interest in keeping Gaza quiet. An Israeli airstrike in Gaza injures 42 Palestinians. PLO officials deny claiming the US threatened to cut ties. The World Bank appoints a new official to Palestine. Israel says officers will be assigned to protect civilians in future conflicts. Pres. Abbas meets US officials and proposes a trilateral meeting before direct talks. A building boom in Ramallah indicates economic growth in the West Bank. Israel agrees in principle to a UN investigation into the Gaza flotilla attack. Israelis and Palestinians use theater to promote peace. Robert Fisk says Israel has become a de facto member of the EU without anyone realizing it. US companies may have been involved in financing the assassination of a Hamas operative in Dubai. The Arab News questions Pres. Obama's policy of pressuring the PLO. PM Fayyad vows no unilateral declaration of statehood and rejects calls to abandon the fight for Palestinian independence.

The Arab League approves direct negotiations, but analysts believe Pres. Abbas will wait until September to initiate them. Jeffrey Robbins says some of Israel's critics are being unfair. UN officials criticize the seizure of Palestinian residential building in occupied East Jerusalem by settlers and police as “provocative.” A UN committee tells Israel to end the blockade of Gaza. A rocket fired from Gaza hits southern Israel. Palestinian security forces have created a new climate in the West Bank. Yossi Sarid says Palestinians have fulfilled most of their roadmap obligations but Israel hasn't. Daniel Seidemann says Palestinians in Jerusalem are a barely tolerated minority. UN summer camps in Gaza compete with those of Hamas and Islamic Jihad. The Financial Times interviews PM Fayyad. Ahmad Majdoubeh says security is essential for peace. George Giacaman doubts direct negotiations will change much.

The CSM describes Peace Now's monitoring of Israeli settlement activity. Aaron David Miller says direct talks may be a political trap for the Obama administration. Israel seizes a Palestinian building in occupied East Jerusalem. Pres. Abbas says he needs written assurances, but Egyptian officials say he has. Roadblocks continue to complicate life in the West Bank. Abbas says reunification must precede peace. The Arab League is set to reject direct negotiations, but PLO officials insist this is a purely Palestinian decision. PM Netanyahu says his government will fall if the moratorium is extended. Palestinian citizens of Israel say they have no choice but to build without permission. Israel speeds up construction of a barrier that will cut off a Palestinian village from its land. Larry Derfner says many Israelis who denounce Palestinian violence defend pre-state Jewish violence. D. Bloomfield worries about the prospect of Rep. Ros-Lehtinen becoming Chair of the House Foreign Relations Committee. Hamas bans lingerie displays in Gaza shops. Mahmoud Habboush says in spite of everything, Gaza is still his home. Daoud Kuttab describes the suffering of Palestinians trying to cross the Allenby Bridge in the summer heat. Michael Jansen says the easing of the Gaza blockade is largely cosmetic. The Arab News says PM Cameron was right to describe Gaza as a “prison camp.” Hussein Ibish describes the Catch-22 facing the Palestinian leadership on direct negotiations.

A dispute erupts over who will pay the medical bills of an American student badly injured by Israeli forces at a West Bank protest. Commercial pilots complain about Israel's interception policies. Pressure mounts for direct talks. Israel destroys 45 homes in a Bedouin village. PM Netanyahu discusses peace with Jordan's King Abdallah. Fatah officials say the PA government will be reshuffled. Egypt seizes control of 10 Gaza smuggling tunnels. Six Palestinians are injured in clashes with settlers in occupied East Jerusalem. The PA warns it may face a financial crisis if pledged donations are withheld. Pres. Abbas is reportedly set to tell the Arab League that conditions are not sufficient for direct negotiations. Israel is planning to demolish the yeshiva of the settler rabbi recently arrested for incitement to kill non-Jews. Ha'aretz interviews former US ambassador to Israel Martin Indyk. Hamas may impose military conscription in Gaza. Ehud Yaari says the Obama administration has decided to cooperate with Israel. PM Cameron says Gaza cannot remain a “prison camp.” Jonathan Freedland says “one-state” proposals from the Israeli right don't offer much to the Palestinians. Ghassan Khatib says all negotiations must be about substance and not form. Yossi Alpher says continued proximity talks may be preferable to direct negotiations.

Roger Cohen profiles the American killed by Israeli commandos in the flotilla attack. The Washington Post interviews DM Barak. Israel appears to be cooperating more closely with the UN on Gaza. Ben White says Israel's policies are making peace more difficult. Settler violence continues in the northern West Bank. PLO officials say Pres. Abbas, who is reportedly under heavy US pressure for direct negotiations, will request an extension of proximity talks. Gazans want a “Marshall Plan.” Hearing-impaired children in Gaza struggle to overcome the difficulties. Shaul Arieli says the settlement project will destroy Zionism. A top settler rabbi arrested for incitement to kill non-Jews is released by Israeli police. Turkey is reportedly working to prevent additional Gaza flotillas from Lebanon. Alon Ben-Meir says Israel needs a Palestinian state. Yaakov Katz says when the settlement freeze expires in September the Israeli government will have to choose between confronting the settlers or Pres. Obama. Hassan Barari says upgrading the PLO mission in Washington is a good thing but does not advance the cause of liberation. John Whitbeck argues that if Kosovo can unilaterally declare independence, then Palestine can too.

Israel confirms soldiers killed an unarmed Palestinian near a West Bank settlement. Settlers and Palestinians clash during an outbreak of “price tag” violence, and the Israeli military says it will curb such incidents. Pres. Abbas tells the AU that Israeli policies are promoting a cycle of violence. Uri Avnery describes proposals from the Israeli right to annex the West Bank as “Rosemary's baby.” The PA says merchants selling banned settlement goods will be punished beginning in August. A leading settler rabbi is arrested for incitement to kill non-Jews. A report from the GAO says Israel is interfering with US efforts to enhance Palestinian security forces. Ha'aretz interviews bereaved Gaza Dr. Izzeldin Abuelaish. Israel bombs three targets in Gaza. Abbas says the “entire world” is pressuring for direct talks but Palestinians need more clarification. Seth Freedman says a controversial nine-year-old video of PM Netanyahu is no surprise. The Guardian interviews Palestinian MK Haneen Zoabi. As the blockade eases, a new mall opens in Gaza. The Pennsylvania Senate race turns into a competition of TV ads between Jewish American groups.

Israel kills a Palestinian militant in southern Gaza. Women in Gaza seek new work due to economic difficulties. Israel says a new aid ship from Lebanon won't reach Gaza. Smugglers are cutting through Egypt's wall under the Gaza border. Pres. Mubarak says he will continue peace efforts. The US upgrades the diplomatic status of the PLO mission in Washington. Pres. Abbas issues a stark warning to Fatah about its future viability. Israel approves armored vehicles for Palestinian security forces. The head of the Israeli military internal investigation into the flotilla attack says political means were available to resolve the crisis. Israel expects to purchase F-35 jets from the US. Abbas says Pres. Obama needs to provide more clarity to the Palestinians on key issues. Former Israeli and Palestinian fighters use theater to promote peace. Osman Mirghani says Palestinians should unite to deal with PM Netanyahu. The Arab News says Israel isn't the world's most isolated country, as its diplomats claim, but it should be.

Palestinians say a Palestinian killed by Israeli forces near a West Bank settlement was unarmed. Gaza flotilla organizers continue planning campaigns. Israel continues to jail a leader of Palestinian nonviolent protests. Eight Palestinian buildings near Ramallah are destroyed by Israeli forces. Pres. Abbas signals he will resist pressure for direct talks. Israeli shelling kills two Gaza militants, injures six other people. PM Fayyad continues to plan a cabinet reshuffle. Israel's approach to civilian casualties appears to be changing following the Gaza war. More doubts surface about Israel's new anti-rocket system. US officials say final status issues will only be discussed in direct negotiations. A Palestinian man is severely beaten for talking with a Jewish girl in Israel. D. Bloomfield says trust is the missing element for peace. The Forward looks at controversies over Caterpillar. Felice Friedson of the Media Line says if Israel doesn't make its policies clear the UN will decide for it. Michael Jansen says arming Israel is not the path to peace.

The new Israeli anti-rocket system is not considered foolproof. The PA urges Israel to release seized oxygen machines. Israel will seek to limit civilian deaths in future wars. Pres. Abbas says he needs more assurances from the US on borders, but PLO officials deny he sent a secret letter to Pres. Obama. Some Gaza factories are reviving due to the easing of the blockade. Palestinian warn against Israel seizing more property in Jerusalem. Israel declares a Palestinian village in the Jordan Valley a “military zone” and destroys it. PM Netanyahu says he is willing to take risks for peace, and Ha'aretz looks at what kind of agreement he may have reached with Obama. More than 70% of Israelis favor peace talks. Israel's outgoing ambassador to the UN fears delegitimization. Israel allows a major inflow of cash to Gaza banks. A Palestinian man is convicted in an Israeli court of “rape by deception” for telling a woman he is Jewish. The Jordan Times says Obama has nothing to show for his peace efforts. Lebanese officials say Palestinians may be allowed work permits while retaining their refugee status. Ori Nir describes an event featuring young Israeli and Palestinian peace activists including the joint APN/ATFP summer interns.