The National praises PM Fayyad's state-building program. PM Netanyahu warns that settlement building cannot continue unrestrained. H.D.S. Greenway says peace is in sight. Questions are raised by the PLO dissolving of its negotiations unit. A Jerusalem conference is closed by Israel. The PA says an Israeli investigation into an attack in 2002 makes excuses for murder. Israel may recognize many outposts. Israel is concerned about the emerging new Arab order. Pres. Abbas points to an international consensus against settlement building. Hamas accuses Israel of escalating tensions. Settlers attack Palestinian villages. Bradley Burston asks what if Israeli forces treated settlers as they do Palestinians. Alon Idan says Netanyahu does not recognize his weakened position. A new poll shows favorable American attitudes towards Israel. Dennis Ross tells the J Street conference that time is running out for peace. DM Barak says Israeli citizens cannot take the law into their own hands. Gershon Baskin says Israelis can learn from J Street. The Swedish FM spends a night in Nablus. Hamas demands UN schools in Gaza stop teaching about the Holocaust. Fayyad says he's offered Hamas a pragmatic agreement, and seeks public input through social media.

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