NEWS: Both the Palestinian public and political leaders are deeply divided about the national reconciliation agreement, as is the Arab media. Hamas and Fatah are continuing their negotiations in Cairo. Salam Fayyad and Ismail Haneya both welcome the agreement. The EU lays out terms for continued aid to a new Palestinian government. Residents of Kafr Aqab in occupied East Jerusalem are cut off from most public services by Israel's separation barrier. A Jerusalem monastery is vandalized with hateful slogans by Jewish extremists, an attack condemned by the Chief Rabbinate of Israel, the PA Ministry of Waqf and Religious Affairs, and the Heads of the Local Churches of the Holy Land,. Israel says it is concerned that Hezbollah might get arms from Syria. PM Netanyahu orders his cabinet to cease “chitchat” about Iran. Palestinian MK Tibi's right to speak in the Knesset is again restricted. COMMENTARY: Ethan Bronner says the agreement between Hamas and Fatah carries risks for both Abbas and Netanyahu. Joe Klein says if it leads to the replacement of PM Fayyad, the agreement will be a disaster for the Palestinians. Khaled Abu Toameh doubts that the agreement will work. Robert Danin says implementing the agreement will be very difficult. The National says Palestinian unity is the only way forward. Magid Shihade says the agreement will have real consequences for all parties. Ha'aretz interviews Mohammed Bakri about his 2003 film “Jenin, Jenin.” Sefi Rachlevsky says the Israeli government isn't doing enough to protect its citizens. Moshe Arens says democracies around the world are warming to Israel. Larry Derfner says Israel is on the road to war with Iran.

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