The Washington Post reports Israel's controversial West Bank separation barrier may remain uncompleted. The U.S. strongly criticizes increased Israeli restrictions on West Bank access for foreign nationals, especially Arab Americans. Israeli Prime Minister Netanyahu denounces Vice Premier Moshe Ya’alons derogatory remarks about American and Israeli anti-settlement groups, especially Peace Now. Several articles offer analyze the spate of violence between Hamas and Al-Qaeda-style extremist groups in Gaza. Controversy continues over an article published in the Swedish paper Aftonbladet accusing Israeli soldiers of stealing the organs of Palestinians during the war in Gaza.

After meeting with Egyptian President Hosni Mubarak yesterday, President Obama voices his optimism about the peace process, but says it is stuck in "a rut." Polls show that Israelis support Prime Minister Netanyahu's resistance to a full settlement freeze, though he has reportedly suspended West Bank settlement construction. Washington Jewish lobby J Street unveils plan for a grassroots effort to engage U.S. citizens. Amira Hass reports on increased Israeli restrictions on Palestinian-Canadian businessmen and other travelers to Israel and the occupied Palestinian territories. In an op-ed for the Financial Times Shai Feldman and Gilead Sher argue for a revival of the Arab Peace Initiative.

Israeli officials have reportedly agreed to a temporary moratorium on West Bank settlement construction activity, outraging Jewish settlers. A poll released yesterday finds that Palestinians prefer Mahmoud Abbas and the Fatah party over Hamas. Egyptian President Hosni Mubarak meets today with President Obama in Washington to discuss the Middle East peace initiative. Analysis of the newly elected Fatah leadership continues. The Jewish Telegraphic Agency profiles the new Israeli ambassador to the United States, Michael Oren. Politico reports that Israelis are voicing increasing disappointment in President Obama's Jewish chief-of-staff, Rahm Emanuel.

Egyptian President Hosni Mubarak meets today with President Obama in Washington. A shootout at a mosque in south Gaza between Hamas and extremist Islamist group leaves at least 22 dead. Tensions increase between Israel and Hezbollah. Haaretz profiles a U.S.-based non-profit organization that has invested millions of tax-free dollars buying up land in occupied East Jerusalem. Israel's envoy to the United States is reportedly set to meet with White House officials and U.S. envoy George Mitchell's staff in Washington to discuss a settlement freeze. Israeli Defense Minister Ehud Barak postpones a cement delivery into Gaza. Fatah elects a Jewish Israeli, Uri Davis, to its Revolutionary Council.

Israel rules out kidnapping as a possibility after launching a search for a soldier who was feared missing. Oman and Qatar have reportedly told the U.S. that they will renew diplomatic ties with Israel if it freezes settlement activity, while Israel expresses its skepticism about the pledge. At a press conference yesterday President Mahmoud Abbas insists that Palestinians will not agree to a state with temporary borders. A district court refuses a request from Jewish families who have moved into homes in the Sheikh Jarrah neighborhood of occupied East Jerusalem to issue a restraining order against the Palestinian families who were evicted from those homes. As analysis of the recently concluded Fatah party congress continues, an op-ed in The Guardian criticizes the conference for excluding women entirely from the new leadership committees.

Human Rights Watch calls on Israel to investigate seven alleged incidents of IDF soldiers firing at Palestinian civilians flying white flags during the Gaza war. Two Israeli civilians are shot and wounded in the West Bank. Settlers in the West Bank outpost of Bnei Adam agree to voluntarily evacuate. Conflicting accounts are reported from the Hamas and Israeli leaderships on the progress of talks regarding the release of captured Israeli soldier Gilad Shalit. Israel increases restrictions on foreigners entering the country with ties to the West Bank. Analysis of the Palestinian political scene continues in the wake of Fatah’s recently concluded party congress.

Middle East Progress interviews ATFP Advocacy Director Ghaith al-Omari. Fatah concludes its party congress, electing a largely new leadership committee and prompting speculation on a new beginning for the party. The New York Times reports that many Israelis are worried that this tranquil summer may be ‘the calm before the storm.’ Kadima party chairwoman Tzipi Livni voices her opposition to releasing jailed Fatah leader Marwan Barghouti. The Israeli organization Peace Now reports that construction is underway to expand an existing Jewish settlement north of Jerusalem. Israel and the US are reportedly discussing the status of the West Bank settlement of Ariel. Israeli officials reportedly visited Jordan last week to assuage concerns that Israel plans to transfer Palestinians from the West Bank into Jordan.

Palestinian Prime Minister Salam Fayyad announces that Saudi Arabia will deliver $200 million to the Palestinian Authority. Fatah prepares for what is scheduled to be the final day of their party congress, after electing jailed leader Marwan Barghouti to a top post among the new generation of leadership. A letter to President Obama from 71 US Senators urges him to pressure Arab states to normalize relations with Israel. US Jewish leaders express their support for Boston-based Israeli consul general Nadav Tamir, who has been summoned to Israel following his leaked warnings about deteriorating US-Israel relations.Israeli Defense Minister Ehud Barak express his optimism regarding peace negotiations, while Mohammed Dahlan reportedly says no negations will take place unless a deadline for peace is announced in advance.

The Fatah conference votes another term for President Mahmoud Abbas as party chief, and embraces the strategic goal of peace based on two states, further distancing itself from rival party Hamas. Israeli jets bomb a tunnel on the Gaza-Egypt border. Israeli Interior Minister Eli Yishai calls for continued settlement construction in the controversial “E-1 corridor” in occupied East Jerusalem. Palestinian sources report that progress has been made on the release of captured Israeli soldier Gilad Shalit. Prime Minister Netanyahu calls the 2005 Israeli withdrawal from Gaza “a mistake,” and vows not to remove settlers from the West Bank. Thomas Friedman produces a second article about Palestinian economic development in the West Bank, this time focusing on the new security services.

Fatah postpones elections for its decision making body, but extends the party conference for at least two more days. President Obama's decision to bestow the Presidential Medal of Freedom to former Irish president Mary Robinson draws criticism from some Jewish American groups. Following international criticism, the Israeli military is considering new measures to warn Palestinian civilians of impending aerial attacks. Palestinian officials report that the U.S. will push for the borders of an independent Palestinian state to be the first issue focused on in any renewed permanent status peace negotiations. A recently released poll shows that more Israelis would prefer Kadima party leader Tzipi Livni over Benjamin Netanyahu for Prime Minister. Egyptian President Hosni Mubarak will meet with President Obama in Washington next month.