NEWS: The US and Israel say they are working on a new framework for negotiations. Israel bombs targets in the Gaza Strip. An Israeli museum in Jerusalem highlights work by artists from the Islamic world. Settlers are issued restraining orders to prevent planned attacks on Palestinians. Palestinian officials say mass protests are planned to coincide with a possible UN initiative in September. Occupation authorities worry about possible Palestinian use of arson. Palestinian police establish a radio station. The EU says it's contributing €22.5 million to help the PA pay salaries. Israel’s supreme court orders the dismantling of the largest settlement outpost. The UN says occupation zoning policies are driving Palestinians out of “Area C.” COMMENTARY: Gershon Baskin says Israel’s economic health depends on peace with its neighbors. Ben White says the Israeli left needs to wake up. Daniel Seidemann says the two-state solution is hanging on by its fingertips in Jerusalem. Mousa Qous says Israel takes a settler mentality in Jerusalem. The Daily Telegraph says PM Netanyahu is offering nothing new. Amos Oz says fanaticism is the underlying problem. Bloomberg looks at Middle Eastern commentary on possible Palestinian UN initiatives. Lara Friedman says Israeli protests highlight the costs of the occupation. Bradley Burston says the protests leave Netanyahu with only pursuing peace

NEWS: Israeli society is divided over free-speech rights. Gaza border violence is another major challenge to Palestinian statehood. Two Palestinians are killed by occupation forces in the West Bank. The PA says it will pay its employees full salaries starting Tuesday. One Lebanese soldier dies in an exchange of fire with Israeli troops at the border. PM Netanyahu says he's working with the United States to try to restart diplomacy. Israel plans to build another separation wall, this time in the Golan Heights. The “Palestinian Popular Committees” plan a civil disobedience campaign in the occupied territories for September. Fatah leader Mohammad Dahlan launches a barrage of accusations against Pres. Abbas. Palestinians in Lebanon voice growing support for Syrian protesters. COMMENTARY: ATFP President Ziad J. Asali urges the parties to find a compromise at the UN. Amira Hass interviews economist Raja Khalidi. Edgar Bronfman and Adam R. Bronfman say Netanyahu should go to Ramallah on a peace mission. Raghida Dergham says the atmosphere at the UN on the Middle East is starting to resemble the Cold War era. Charles Hawley looks at connections between the Israeli and European ultra-right. The Gulf News says Dahlan should be fully prosecuted. Dominique Moisi says Israel is much more economically fragile than it appears. Trudy Rubin says Israeli insiders are concerned about the drift away from 2-state discussions. Xelena Gonzalez says Israel's water discrimination in the occupied territories is disgraceful.