The Israeli Cabinet will consider an investigation into allegations in the Goldstone report. A Palestinian cooperative trades olive oil for foreign cash in an effort to sustain a wider Palestinian economy as violent attacks by extremist settlers increase. Al-Jazeera airs an offensive parody of the Palestinian national anthem, angering Palestinians. A Palestinian poll says President Abbas could regain lost support before scheduled elections in 2010. Commentaries in Gulf News, Arab News and Al Hayat evaluate Pres. Obama’s positions on peace and the Goldstone report. In the Nation, Adam Horowitz and Phillip Weiss evaluate shifting attitudes among Jewish Americans regarding Israel.

The UN Human Rights Council endorses the Goldstone report putting diplomatic pressure on Israel, but Russia joins the US in asserting that it will not permit a debate in the Security Council. The controversy has damaged the popularity of President Abbas, who is now only slightly more popular than Hamas leader Hanniyeh according to a new poll. Asharq Al-Awsat reports Abbas may be considering calling for elections in January in spite of objections from Hamas. The BBC profiles Hamas-Fatah rivalry in Qalqilya. Prime Minister Netanyahu reportedly says that an agreement has been reached with the United States on settlements. Patrick Seale argues that Israel should understand that President Obama’s patience is not endless. Hussein Ibish outlines what would be at stake for Israel and the Palestinians in a third intifada.

The PA pushes a strongly worded UN resolution condemning Israel for alleged war crimes committed in Gaza and provocative steps in Jerusalem, but Ha’aretz argues that the more extreme the resolution is, the better it is for Israel. Prime Minister Fayyad expresses concern that Israel is contemplating a Palestinian “Mickey Mouse state.” 3 Palestinians are wounded in an Israeli air strike on Gaza tunnels. Reports suggest that Fatah officials may already have signed an Egyptian brokered national reconciliation deal. The JTA asks whether or not Israeli ambassador Oren will attend the upcoming J Street conference. In the Washington Post, Former Israeli Defense Minister Ephraim Sneh argues that PM Fayyad’s plan for building de facto Palestinian statehood could bring about “real progress toward a two-state solution.”

President Abbas gives a major address pledging to resume efforts to push the Goldstone report in multilateral institutions and reiterating Palestinian conditions for peace talks. Israeli and Palestinian leaders welcome Pres. Obama's Nobel Peace Prize. Special Envoy George Mitchell reiterates that a Palestinian state must be "contiguous."Israeli forces reportedly demolished a Palestinian home in occupied East Jerusalem. News reports differ as to whether or not Palestinian factions are set to sign an Egyptian brokered reconciliation agreement in coming days, and Hamas reiterates its opposition to new elections. Hundreds of lawsuits have been filed against Israeli officials around the world, Turkey excludes Israel from planned military joint exercises, and Israel has warned Britain against any show of support for the Goldstone report.

NOTE: due to Thursday's ATFP Gala, the ATFP world news roundup will resume on Monday, October 19.

The Palestine Investment Fund launches a $220 million housing project in the occupied territories. Israel is considering restricting travel by senior officials fearing arrest as a consequence of the Goldstone report. Hamas claims that it always supported the report and that the organization is "praised" in it. UN Secretary-General Ban Ki-moon supports moves by Pres. Abbas to reopen debate on the report in the UN Human Rights Council. US reportedly tells Egypt that Palestinian reconciliation would undermine negotiations with Israel. Kadima leader Tzipi Livni accuses Prime Minister Netanyahu of "humiliating" the Palestinians, while Netanyahu says combating the Goldstone report is Israel's main priority. An Israeli pornographer uses sex to "promote coexistence." An Israeli embassy spokesman says that J Street "could impair Israel's interests." ATFP President Ziad Asali says Netanyahu's commitment to peace will be tested in coming months.

Israelis and Palestinians brace for a tense Friday with increased Israeli restrictions on Palestinian entry to Jerusalem, including Arab citizens of Israel, and calls for a Palestinian "day of rage." US and PA officials urge calm. Ha'aretz outlines the escalation of tensions in Jerusalem, and reports that the US is "furious" about Israeli incitement against Pres. Obama. Israeli Foreign Minister Lieberman dismisses any prospects for peace in the near term. A Palestinian unity deal may be signed in late October. The Jerusalem Post analyzes Prime Minister Fayyad's state-building plan. Hussein Ibish argues that calls for a third intifada, the dissolving of the PA, the resignation of Abbas or the removal of Fayyad are irrational and irresponsible.

The UN Security Council will debate the Goldstone report on the Gaza war, with the support of the PA, on October 14. Israel's Foreign Minister Lieberman reportedly dismisses the idea of a peace agreement in the near future, but Jordan's King Abdullah warns that there is no future without two states. International promises to rebuild Gaza remain unfulfilled, and Gaza residents may have lost up to $500 million in fraudulent tunnel schemes. Arab commentaries assess the political damage to the PA from the Goldstone affair. Hussein Ibish argues that only a determined de-escalation of tensions can prevent an explosion in the occupied territories, especially East Jerusalem.

Tensions continue to mount in occupied East Jerusalem, with the city under "siege." The US calls for calm as fears of an explosion of violence grow. An Israeli Cabinet minister agrees that Jewish extremists are also to blame for Jerusalem tensions. The Washington Post looks at the continued influence of Hamas. Reports suggest that Palestinian President Abbas may have received significant assurances from the United States in return for agreeing to defer debate on the Goldstone report, while PLO leaders say the decision was "a mistake" and Libya has requested a Security Council meeting on the report. The Jerusalem Post reports on efforts by Foreign Minister Lieberman to craft "a new Israeli foreign policy." Hussein Ibish analyzes changes in US foreign policy under the Obama administration, and Paul Salem looks at the lack of Arab diplomacy.

Tensions continue to flare in occupied East Jerusalem, with some observers describing the situation as "explosive," and President Abbas accusing Israel of buying up billions of dollars worth of property in the city. Fallout from the deferral of the UN Human Rights Council's debate on the Goldstone report continues, with anger from the Palestinian public, a US denial that it pressured the Palestinian leadership, and a statement of support for the report by Prime Minister Fayyad's cabinet. Hamas arrests militants in Gaza money to fire rockets into Israel. The Arab News looks at Israel's "PA only" visas. Al-Ahram highlights a report on the suppression of nonviolent Palestinian protests against Israel's separation barrier in the occupied West Bank. Richard Falk makes the case for the historical importance of the Goldstone report.

The U.N. Human Rights Council postpones its scheduled debate on the Goldstone report into the Gaza war, and Palestinian President Abbas faces an angry backlash for agreeing to the delay. Disturbances between Palestinian worshipers and Israeli police at the Haram Al-Sharif/Temple Mount continue, but in spite of warnings from Prime Minister Fayyad analysts do not anticipate an eruption of violence. The Washington Post profiles Palestinian mayor and Brewer David Khoury. The Ma'an news agency outlines Egyptian proposals for Palestinian national reconciliation. Ha'aretz reports that Vice Prime Minister Ya'alon recently canceled a trip to the UK fearing possible arrest for war crimes. UNRWA plans to teach Gaza children about the Holocaust. In the Arab News, ATFP President Ziad Asali argues that Palestinians should trust President Obama.