US Middle East Envoy George Mitchell reportedly holds constructive talks with Israeli diplomats while US officials say US-Israel relations depend on a settlement agreement, and there is a growing confidence about the resumption of Israeli-Palestinian negotiations. The PA has established a committee to look into allegations of "organ harvesting" by Israeli troops. Reports suggest a steep drop in Israeli settlement construction, but Ha'aretz reports that the Israeli government is considered recognizing the legality of some unauthorized settlement activity. Israel is attempting to rebuild its diplomatic ties to a number of African states. Former Prime Minister Olmert stands accused of swindling Jewish Americans. On the Israel Policy Forum blog, Hussein Ibish explains why he wrote ATFP's new book on the one-state agenda.

US Middle East envoy George Mitchell is due to meet with Israeli diplomats today to discuss a possible settlement freeze, but an Israeli cabinet minister says Prime Minister Netanyahu has pledged not to make any such commitment. Palestinian and Israeli ministers hold economic talks in Jerusalem. Amira Hass argues that the outcry over violent crimes in Israel obscures the deeper violence of the occupation. Hamas and Israel continue to bicker over a possible prisoner exchange involving captured Israeli soldier Gilad Shalit. A senior Israeli rabbi declares that Jews who sell land to Arabs are “enemies.” Israeli and West Bank mayors pitch a joint economic development plan. Moment magazine tracks the evolution of Palestinian identity among some Arab citizens of Israel.

President Obama hopes to broker Israeli-Palestinian peace talks at the upcoming UN General Assembly meeting, and reportedly has a two-year framework for achieving a peace agreement. A Palestinian teenager has been killed by Israeli soldiers in the West Bank. Palestinian Prime Minister Fayyad continues to explain his de facto statehood program, which is supported by both Arab and Israeli commentators. Hamas leaders deny the Holocaust took place, and pledge never to recognize Israel. Ha'aretz reports that Israeli raids in the West Bank have been decreased due to American diplomatic pressure. The National reports that Israeli settlers plan 150 new homes in occupied East Jerusalem.

Former Israeli Prime Minister Ehud Olmert is indicted on three counts of corruption. The Israeli Air Forces launches an air strike on Gaza. Palestinian President Mahmoud Abbas says he will not participate in any peace talks until Israel agrees to a full settlement freeze, while EU foreign policy chief Javier Solana says Israel and the US are working on the technical aspects of a deal and may agree by mid-September. Hamas has hinted that Fatah officials who were in the West Bank for the party congress might not be allowed reentry to Gaza. Israel opens all three border crossings with Gaza today for commercial shipments and humanitarian aid.

The State Department confirms that it is holding firm on the policy of no new Israeli settlements, while Palestinian leadership insists that a full settlement freeze is a preconditions for new peace talks and the Israeli government confirms there has been no agreement on settlements with the US. The New York Times looks at the long history of non-violent civil disobedience in the West Bank village of Bilin. The Toronto Star examines how new construction of Jewish homes in Arab East Jerusalem is harming urban relations. Palestinian President Mahmoud Abbas plans to tour a number of Arab and European countries before the end of the year. Hamas chief Khaled Meshal is reportedly planning to fly to Cairo next week to approve a possible deal that includes the release of captured Israeli soldier Gilad Shalit.

The Jewish Daily Forward analyzes movement towards an Israeli settlement freeze. Reuters reports that despite recent growth trends the West Bank's economy cannot thrive in an environment of strict mobility restrictions. Two Palestinian families in Jerusalem's Old City are forced to demolish their own homes. Palestinian President Mahmoud Abbas is set to meet with French President Nicolas Sarkozy in Paris next week. The US has reportedly agreed to exclude East Jerusalem from formal negotiations on a settlement freeze. Israeli group Peace Now files a petition to halt the construction of 15 permanent structures in the West Bank settlement of Kiryat Netafim. Israeli Prime Minister Netanyahu met earlier today with German Chancellor Angela Merkel.

The parliament of the PLO convenes in the West Bank for its first meeting in more than 10 years. Israeli Prime Minister Netanyahu met in London today with US Envoy George Mitchell but failed to come to an agreement on a settlement freeze. The U.S. government is reportedly considering an Israeli proposal for a Palestinian state with 'temporary' borders. Palestinian Authority sources say that President Abbas is open to meeting with Prime Minister Netanyahu at the meeting of the United Nations next month. The BBC looks at the dilemma faced by Palestinian workers employed in Israeli settlement construction.

Palestinian Prime Minister Salam Fayyad announces that the Palestinian Authority intends to create a de facto state by 2011. Israeli Prime Minister Netanyahu continues his diplomatic meetings in Europe, meeting earlier today with UK Prime Minister Gordon Brown. An Israeli airstrike on a tunnel between Gaza and Egypt kills three Palestinians. The US State Department announces that it is approaching an agreement on the renewal of negotiations between Israel and the PLO. Fatah proposes a three-month truce with rival Hamas. The Independent looks at how the West Bank town of Nablus is flourishing under eased Israeli restrictions.

Israeli plans to construct 104 new housing units in the Palestinian East Jerusalem area Ras al-Amud draw swift reactions. Israeli Prime Minister Netanyahu heads to London for talks with U.S. Special Mideast Envoy George Mitchell and European heads of government. Reports from Gaza say that Hamas is enforcing a conservative religious dress code on all school girls. Controversy continues over the publication of an article in Swedish paper Aftonbladet accusing the Israeli army of "harvesting" organs from Palestinians during the Gaza war. An op-ed in The Wall Street Journal by Sam Bahour urges Israel to allow more Palestinian economic development in the West Bank.

The US State Department formally objects to new, discriminatory visas being issued by Israel, mainly to Palestinian Americans. The JTA reports that in the next few weeks the Obama administration will "finalize the steps" for new peace in the next few weeks, as the President discusses the issue with the Jordanian monarch and Israel and the Palestinians exchange blame for the deadlock. A new poll suggests that only 12 percent of Israelis believe Obama supports Israel. Leonard Fein in the Forward and Rami Khouri in the Daily Star both reassert the urgency of a two-state agreement. The National profiles Uri Davis, the Jewish Israeli elected to Fatah’s Revolutionary Council. Ma’an reports that Muhammad Dahlan will have no responsibilities related to Gaza in his new role in Fatah and that a woman, a Christian and a Gazan are to be appointed to the Central Committee.