Pres. Obama says Israel must make “hard choices.” Palestinians see prospects of a peace agreement dwindling. Roger Cohen says Obama got it right that peace requires Palestinian independence and Israeli security. Aides to PM Netanyahu play down the dispute with the United States, although he was highly critical of Obama’s speech. Israeli analysts say the mutual mistrust is evident. The CSM praises Obama’s emphasis on the 1967 borders. The Quartet and the EU back Obama’s stance. Hamas says it will not heed Obama’s call to recognize Israel. UK officials say they are “deeply disappointed” by Israeli settlement plans. Ramallah is flourishing because of the state-building program. Palestinians are uncomfortable with Obama’s reference to Israel as a “Jewish state.” Obama’s AIPAC speech seems to mollify some Israelis. Palestinian officials say Obama’s speeches lay the basis for a new peace process. Ha’aretz doubts there will be a third intifada. Merav Michaeli says it’s no wonder that Obama can’t understand why Israel will not act in its own interests. Ahmad Tibi says when addressing Congress Netanyahu will have to defend his policy of "doing nothing." David Halperin and Peter Joseph defend Obama’s positions against criticism from other Jewish Americans. Israel announces more settlement plans in extremely sensitive areas around occupied East Jerusalem. The BBC interviews Obama. Palestinians plan more border protests for June 5. Jewish students in California seek legal action against pro-Palestinian campus activists. The National says Palestinians have a chance to seize the initiative. Tariq Alhomayed says Hamas needs to stop being an obstacle to negotiations.

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