Proximity talks begin. PM Netanyahu appoints an Arabic-language spokesperson. Israel bombs two Gaza tunnels. Palestinian refugees say UN food aid is greatly reduced. Palestinians claim new settlement activity is the first violation of negotiation conditions. Kadima leader Livni hints at a possible coalition with Netanyahu. Israel is unanimously accepted into the OECD. Akiva Eldar says everyone should by Palestinian and not settlement products. Daoud Kuttab says Israeli maps obliterate Palestine. The US says Israel has agreed to delay the Ramat Shlomo project for at least two years. Israelis worry Americans support for their nuclear policy is eroding. Ha'aretz requests official documents on the 1948 Deir Yassin massacre. Asharq Al-Awsat interviews Pres. Abbas. The Jordan Times is skeptical about indirect initiations, but the Arab News says low expectations may be useful. Moshe Yaroni says Israeli democracy is threatened by the Kamm affair and the secret arrest of Palestinian-Israeli activist Ameer Makhoul, which Israeli media is banned from reporting.

Roger Cohen says Israelis are trapped between security and anxiety. The Washington Post profiles Israeli settlement activity in Jerusalem. In a new poll, 60% of Palestinians favor proximity talks, huge leads for Fatah over Hamas. The Arab Bank closes two out of three Gaza branches due to Hamas policies. Bethlehem prepares for the second Palestine Investment Conference. Special Envoy Mitchell meets PM Netanyahu. Hamas condemns Pres. Abbas for opposing violence. Ha'aretz analyzes the list of goods banned from Gaza by Israel. The Israeli Foreign Ministry is working closely with an ultra-right wing organization on Palestinian "incitement." Israel's Vice-Premier says talks are doomed to failure. Avi Shlaim and Simon Mohun say the OECD must put conditions on Israel's membership. An Israeli general is accused of a cover-up in the death of Rachel Corrie. Patrick Seale says the US extracted valuable concessions from Israel but Palestinians may squander them. Rami Khouri looks at the debate on the pro-Israel lobby. George Hishmeh says Walt and Mearsheimer disagree about the viability of a two-state solution. Daoud Kuttab says Arabs are pessimistic about Israel but see hope in the US. Alon Ben-Meir says Arab states should re-prioritize the Arab Peace Initiative.

The American Jewish community and its leadership are at odds on Israel. The Washington Post warns against "blunt pressure" on Israel. Israeli authorities say a fire at a West Bank mosque was deliberately set, bolstering Palestinian claims of settler arson. Settlers plan to disrupt negotiations, set to begin in days. PLO officials accuse Israel sabotaging talks, and say US credibility is at stake. Ha'aretz says time is not on the side of Israel as a Jewish, democratic state. President Abbas accuses Hamas of smuggling arms to the West Bank. Gideon Levy says with friends like Elie Wiesel, who only want to perpetuate the occupation, Israel does not need enemies. Settlers wish destruction on DM Barak's home. Judge Goldstone says his loyalty was to truth, justice, but Deputy FM Ayalon compares him to a Nazi. The National profiles the PA boycott of settlement products, which is also being taken up by Palestinian citizens of Israel, and the Jordan Times praises the boycott and says Arab states should work to extend it to Europe.

Mohammad Mustafa says the international community, and particularly the Quartet, must show more political will to promote Palestinian state building and development. Palestinians angrily accuse settlers of torching a West Bank mosque. As proximity talks are set to begin, Israel is highlighting Palestinian "incitement," but Yossi Alpher says this campaign is hypocritical. The PA says all Palestinian laborers must stop working in settlements by the end of 2011. Palestinian nonviolent protesters, including children, face Israeli prison terms. PLO factions struggle to form a united list for municipal elections. An Israeli court asks why an unauthorized outpost has not been dismantled. Amira Hass says ordinary Israelis are perpetuating the occupation. Israel says it's planning a new West Bank train network linked to Israeli railways. David Axelrod says Pres. Obama agrees negotiations should not start with Jerusalem. Giora Eiland says talks are bound to fail. Two Israeli soldiers are indicted for using a 10-year-old boy as a human shield during the Gaza war. Warm relations have apparently been restored between the White House and major Jewish groups. Rami Khouri lists 10 reasons why proximity talks should not be dismissed. Osama al-Sharif says the region cannot continue suspended between no war and no peace.

Proximity talks are set to begin, but Israeli intelligence says Pres. Abbas is preparing for their failure. Israelis harshly criticize a PA ban on settlement goods, but the PA insists on the legitimacy of the ban and the Palestinian Economy Minister defends the ban in the Jerusalem Post. PA security officers are arrested in Jerusalem by Israel. Israel considers expanding areas of Palestinian control in the occupied West Bank. Palestinians accuse settlers of setting fire to a mosque. Hamas fears an economic crisis could spark a revolt in Gaza. Settlers continue to expand unauthorized outposts. The UK has refused to accept the new Mossad representative after expelling its predecessor. Six Palestinian MKs who traveled to Libya are under heavy criticism after returning to Israel. Emile Hokayem says the one-state agenda is a romantic but dangerous fantasy. Adel Safty says PM Netanyahu's stated positions do not allow for any progress.

Kai Bird says Sheik Jarrah has come to symbolize everything that has gone wrong between Israelis and Palestinians. The LA Times looks at Israeli censorship policies, and at Pres. Obama's continuing popularity with Jewish Americans. The US is seeking to keep Israel's nuclear weapons off the table at the UN. Israel reportedly wants upcoming proximity talks to be "discreet." Hamas is short on cash. Settlers use new tactics against Palestinians. Shaul Arieli says PM Netanyahu must explain negotiations to the Israeli public. Pres. Abbas confirms negotiations will tackle all permanent status issues and seeks to expand "Area A." Israel says the PA boycott of settlement products will be raised in the talks. The BBC obtains key documents on the siege of Gaza. The Financial Times says Obama must insist on the outcome of negotiations. Walid Salem says despite obstacles, PA State building is moving forward. Omar Baddar profiles "Sleepless in Jerusalem and Gaza." John Mearsheimer says Israel will never allow Palestinian statehood and will turn into an apartheid state that will ultimately become dominated by a Palestinian majority, but Hussein Ibish says Mearsheimer is wrong and is using Palestinians as a foil in his feud with the pro-Israel lobby.

Roger Cohen profiles PM Fayyad, and Time magazine lists him in its top 100 most influential people in the world. Fayyad calls for lifting the siege of Gaza. A cosmetics company ceases operating in Israeli settlements. Sec. Clinton says Arab states should do more on peace. Pres. Abbas says the US has pledged to stop Israeli provocations, and US officials reportedly promise not to veto a Security Council resolution if further settlement activity occurs in Jerusalem. Tzvia Greenfield says Israel must make peace if it wants to survive. Pres. Obama has reportedly said that if talks are still stalemated in the fall, he will call an international conference. Israelis worry that settler violence is spinning out of control. Jordan's King Abdullah says Israel is playing with fire. Israelis are concerned Palestinians will seek UN recognition of a state. The State Department says Israel must remove unauthorized outposts. Some Palestinians urge Pres. Abbas to appoint a deputy. The UN distributes laptop computers to Gaza students. Divestment bills do not pass in two California universities. Tariq Alhomayed asks when Arab tolerance for Hamas will end. ATFP President Ziad Asali outlines new nonviolent Palestinian strategies for independence.

The New York Times contrasts the Washington trips of DM Barak and Jerusalem Mayor Barakat. Nonviolent protests are spreading among Palestinians. Another leftist opposition group condemns Hamas tax policies. Hamas accuses Egypt of causing the deaths of tunnel workers. Israeli troops kill a Palestinian protester in a "no go area." The PA says Israel is helping settlers seize Palestinian land. Settlers are briefly arrested after violent attacks on Palestinians. The PA urges Palestinians to stop using Israeli cell phone providers. Interior Minister Yishai is invited to visit the White House. Residents of Silwan present a plan to prevent the demolition of their homes. D. Bloomfield says both Israel and the Palestinians want peace, but with the Obama administration and not each other. Larry Derfner says Israel won't budge on its own. Gideon Rachman says Israelis may hate and fear Pres. Obama, but his policies are in their interests. Jewish American leaders express satisfaction with administration outreach. A commentary from Middle East Progress urges flexibility and perseverance on peace. Elliott Abrams says US policy has undermined the Palestinian leadership. George Hishmeh says PM Netanyahu must choose between political expediency and Israel's national interests. Michael Jansen replies to Aaron David Miller.

Israeli officials disagree about the reason for a lull in Jerusalem settlement activity. As nonviolent Palestinian protests spread, Israel uses new crowd dispersal weapons. Israel expels a fourth Palestinian from the West Bank to Gaza. Palestinian children are reportedly beaten by settlers. Opposition groups warn Hamas its policies may lead to a revolt. Israeli officials predict negotiations within two weeks, but Palestinians say it's too soon. The PA bans Palestinian laborers from working in settlements, but will not fine them. Israeli troops dismantle makeshift settler structures in the West Bank. A Ha'aretz report compares the present situation with the one that led to the 1973 war. Pres. Sarkozy says PM Netanyahu's "foot dragging" on peace is "unacceptable." The Israeli government may be quietly pushing for a "provisional" Palestinian state. US officials say comments by Israel's mayor in Jerusalem undermine peace talks. Israeli officials say they will not honor their commitment to dismantle settlement outposts. Rami Khouri says US Middle East policy is still driven by domestic politics.

Pres. Abbas signals willingness on proximity talks. Roger Cohen sees reasons for hope. Lara Friedman and Daniel Seidemann list the top 10 myths on settlement activity promoted by Israel's Jerusalem Mayor Nir Barkat, who is interviewed by the LA Times. Two Palestinian children are being tried in a military court for stonethrowing. Abbas issues a decree banning settlement goods. Israel reprimands soldiers in "avoidable" deaths of four Palestinians. Palestinian girls participate in Intel's youth science fair. AP profiles PM Fayyad's new brand of politics. More reports suggest Israel has instituted a de facto settlement freeze in Jerusalem, and has demolished 10 settler houses. Palestinians agree to reshuffle the cabinet. Bradley Burston says hating Pres. Obama is becoming a religion in Israel. Haggai Alon says the siege of Gaza spurs Muslim anger.