NEWS: PA Finance Minister Kassis tells a donor meeting that the Palestinian economic crisis is a threat to a two-state solution. The PA says it will sue the transport workers union if it goes on strike. Israel has reportedly taken urgent economic steps to ease the financial pressure on the PA, but Deputy FM Ayalon urges donor states to cut all funding to the PA. DM Barak says Israel should withdraw unilaterally from large parts of the occupied West Bank if peace talks with the Palestinians remain stalled. An obscure militia in the Sinai Peninsula claims a role in recent attacks. The violence in Sinai may force changes to the Israeli-Egyptian peace treaty. PM Netanyahu apologizes to UNSG Ban for leaking parts of a recent conversation. Israel says it has arrested an extortion ring linked to Hamas. PA security forces uncover a secret Hamas detention center in the West Bank. A Hamas official says Khaled Misha'al will step down as head of its Politburo. A press organization condemns the PA arrest of a journalist. A senior PA minister is reportedly being investigated for sexual harassment. COMMENTARY: David Ignatius interviews Pres. Ahmadinejad about Israeli threats and Iran's nuclear program. Ma'an interviews Vera Baboun, a leading candidate for mayor of Bethlehem. Chaim Levinson says the Israeli military is helping settlers develop armed militias. Ha'aretz says Israelis should listen carefully to what Pres. Morsy has to say about the Sinai Peninsula and the peace treaty. Asharq Al-Awsat interviews Hamas Deputy Leader Abu-Marzuq. Lena Odgaard says economic protests in the West Bank are also a political crisis for the Palestinians. The Times of Israel interviews Strategic Affairs Ministry head Kuperwasser. Amira Hass looks at the politics of water in the occupied West Bank.

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