Israel says it may end tax revenue transfers to the PA, prompting calls from the US for clarification and from PM Fayyad for international intervention. Hamas’ leadership denies it is leaving Syria. Palestinian leaders are making their way to Cairo for a national unity agreement signing ceremony. The deal may be partly the result of new Egyptian foreign policy, which Rami Khouri says marks Egypt’s return to the Arab fold. Hamas says the next prime minister must be from Gaza, but Fatah officials say Fayyad may remain in office. Aaron David Miller says the deal creates the illusion of unity. Israel feels increased tension and pressure. Egypt calls on the US to recognize a Palestinian state. Likud hardliners call for annexing the West Bank. The planned opening of the Gaza-Egypt border may cause new problems for Israel. The PA welcomes the death of Osama bin Laden, but Hamas condemns it and calls him a “holy warrior.” Israeli conductor Daniel Barenboim will perform a “peace concert” in Gaza. Akiva Eldar and the Daily Star both welcome the Palestinian unity agreement and Amira Hass says it may serve Israeli policies. Tzachi Hanegbi says PM Netanyahu should announce plans for Israeli national unity. The Arab News says Pres. Obama has capitulated to Israeli intransigence.

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