NEWS: Israel and militants in Gaza exchange attacks. At least five Egyptians are killed in the fighting. Israel blames "poor security" in Sinai for the attacks. Israeli attacks strike a refugee camp in central Gaza. Reuters looks at the group blamed for the attacks in southern Israel. The Media Line looks at the state of Egyptian security in Sinai. The US urges Egypt to do more to control Sinai. Israel opens a light rail service linking West Jerusalem with occupied East Jerusalem. Pres. Abbas says the PLO will not accept observer status at the UN. The battle intensifies in Congress over how to react to a Palestinian UN initiative. COMMENTARY: Akiva Eldar says Israel no longer looks like a Goliath in the region. Avi Issacharoff says the Egyptian revolution has left a vacuum in Sinai. David Borowich Ya’ari says Israelis are awakening to "social justice" issues. Roi Ben-Yehuda says the protests may lead to a new era of Jewish-Arab cooperation, but Yisrael Harel says they are indifferent to the Palestinians. Abir Kopty explains how Palestinians in Israel are trying to involve themselves in the protests. The Daily Star says the exchange of attacks shows the status quo is untenable and peace is the only option. Shane Farrell and Mona Alami say Abbas achieved much in his trip to Lebanon.

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