NEWS: With crossings closed, the pilgrimage to Mecca has become virtually impossible for Palestinians in Gaza. Pres. Ahmadinejad calls the Israeli government “an insult to humankind.” Kadima leader Mofaz demands clarifications from PM Netanyahu about a possible military action against Iran. PA debt is affecting the Palestinian private sector. Four Egyptian soliders are wounded in another attack by militants in Sinai, as Hamas asks Egypt to exclude Israel from security cooperation regarding the Peninsula. The US and Israeli navies are holding joint maneuvers in the Mediterranean. Israel's Deputy PM condemns “outrageous” attacks by Jews against Palestinians. Israeli police say hundreds of Jewish Israelis witnessed a lynching attack against Palestinians but did nothing to stop it. Five suspects are arrested in that attack. Netanyahu promises Pres. Abbas that Israel will catch whoever is responsible for a firebomb attack on a taxi that injured six Palestinians. Hamas arrests an extremist suspected in the death of an Israeli laborer in June. Israeli university heads petition the High Court to reverse a decision granting university status to a school in a settlement. COMMENTARY: Carol Williams asks if Israel is “crying wolf” regarding a possible attack on Iran. James Traub asks if Netanyahu and DM Barak are “crazy enough” to attack Iran against the wishes of the US and the majority of Israelis. Daniel Nisman and Avi Nave explain why, in their view, Israel expects an Iranian retaliation to have a limited impact. Leonard Fein questions Netanyahu's assertions that Iran is an existential threat. Uzi Rubin warns an attack on Iran could bring a massive missile response. Amira Hass outlines how Israel uses military orders to seize Palestinian land in the occupied West Bank. Jeff Barak says it's a sad state of affairs when Israel's 89-year-old president must serve as the isolated "voice of reason" in government. The Jerusalem Post says tolerance of violence and bigotry against Palestinians in Israel must stop. Ben Lynfield says little drama is expected this year if Palestinians resume efforts at greater recognition at the UN.