NEWS: The New York Times explains the grave issues involved in Israel's E1 settlement expansion plan. Israel insists it's pushing ahead with various settlement projects. The Syrian government warns Palestinian refugees not to aid rebels, as opposition forces seize control of the largest refugee camp in the country. The US expresses "deep concern"over the deaths of dozens of Palestinians in Syria. The Israeli Embassy in Ireland deletes a "Christmas" Facebook posting saying Palestinians would have lynched Jesus. Pres. Abbas meets with Pope Benedict XVI and the Vatican says it hopes the recent UN vote will lead to a peace agreement. The Israeli Navy shoots and arrests a Palestinian fisherman off the Gaza coast. Palestinian public employees are planning strikes due to nonpayment of salaries. A new poll suggests a majority of "centrist" Israelis would not back a party that willing to divide Jerusalem. A new Palestinian poll suggests Hamas leader Hanniyeh would beat Abbas in an election held at the moment. A Palestinian journalist claims she was discriminated against by her West Bank TV station for wearing a headscarf. The American Jewish Committee says it's going to focus less on domestic issues and more on supporting Israel. Both Jordanians and Palestinians express unease at talk of a possible confederation. COMMENTARY: Aluf Benn says that during this election season, PM Netanyahu is pandering to the religious right. Amira Hass says a Palestinian boycott of Israeli goods won't hurt Israel at all. Sami El-Ali says Palestinian citizens of Israel have a right to express opinions Jewish citizens find obnoxious. Nahum Barnea says FM Lieberman is a damaging political figure but his case is being mishandled by prosecutors. Gershon Baskin emphasizes it takes time, effort and hard work to build partnerships for peace. Dalia Hatuqa says Hamas and Fatah are no closer to resolving their differences. Lara Friedman condemns disingenuous defenses of Israel's settlement expansion plans. Hussein Ibish says all parties involved in the Israeli-Palestinian conflict are facing a set of crucial choices in the coming months.

NEWS: Syrian government forces kill at least 25 Palestinian refugees, as PFLP-GC leader Jibril flees the Yarmouk camp outside Damascus. Pres. Abbas calls on waring factions in Syria to avoid attacking Palestinian refugees. PM Fayyad urges Palestinians to boycott Israeli goods in protest of Israel's withholding of Palestinian tax revenues. FM Lieberman resignes after being charged with "breach of trust" and other criminal indictments. Palestinian issues are playing almost no role in the unfolding Israeli election. Two Palestinian journalists working for Reuters are beaten and abused by Israeli soldiers. A Palestinian film wins two awards at the Dubai film festival. Israel allows a small shipment of agricultural products to be exported from Gaza. The Emir of Qatar may visit the occupied West Bank and meet with Abbas soon. Abbas sends condolences to Pres. Obama on the massacre at a school in Connecticut. Israeli occupation forces kill a Palestinian man in southern Gaza. Hamas resumes a public presence in the West Bank. A Palestinian official criticizes the Middle East Quartet and its representative Tony Blair as "useless." COMMENTARY: Qantara interviews Sari Nusseibeh. Aner Shalev says a vote for PM Netanyahu amounts to a vote for Hamas. Chris McGreal says the new potential for Palestinian action on Israeli settlement activity at the ICC could help re-start peace talks. The Forward looks at a new theatrical production by Miriam Said and Vanessa Redgrave. Nermeen Murad says it may be time to start looking more carefully at a potential confederation between Jordan and Palestine. Omar Wehbeh looks at the security plight of Palestinian refugees in Lebanon.

NEWS: Hamas' appeal rises in Gaza but it still faces financial woes. Hamas holds an unusual public rally in the West Bank that continues for second day. Israel says in spite of its jubilation, Hamas has been daunted by its losses in the recent conflict. The end of conflict is bringing some life back to Gaza markets. FM Lieberman faces indictment on lesser charges, Including breach of trust, that may allow him to continue his political career. Israeli soldiers assault two Reuters cameramen. An Israeli court urges the rerouting of parts of the West Bank separation barrier. An Israeli border police officer who killed a Palestinian youth is "wanted for murder" on Facebook pages. Israel will equip its military reservists with a new generation of rifle. The Arab League calls on donors to meet pledges to the PA. Reports say PA officials may be studying the possibility of a confederation with Jordan. Gaza fishermen continue to tentatively explore whether Israel has in fact expanded the area in which they are permitted to fish following the cease-fire. COMMENTARY: Adam Gonn says Lieberman's indictment will have little political impact. Oded Carmeli says both Israelis and Palestinians are having fewer children. Sara Hirschhorn says extremist Israeli politician Feiglin poses a clear and present danger to Israel. Salman Masalha says a little-known Israeli "park project" is as dangerous to peace as the E1 settlement expansion plan. Arsen Ostrovsky says Israel is "winning" in Europe by removing the conflict as the central issue in bilateral relations. Uri Savir says the Middle East needs a coalition of young progressives. Raja Shehadeh reflects on recent events. Gil Troy says Pres. Obama's attitude towards Israel reminds him of the late Sen.Moynihan. Amy Ayalon says constructive unilateral moves can help the situation. Jonathan Schanzer asks who or what can succeed Pres. Abbas.Henry Siegman calls Hamas leader Mishaal's Gaza speech "reckless incitement."

NEWS: FM Lieberman invokes the specter of Nazi-ism in criticizing Europe's stance towards Israel's settlement expansion policies. Israeli occupation forces clash with Palestinian protesters near Hebron, with a Palestinian youth killed. Sales of a perfume named after a rocket soar in Gaza. An extremist party is banned from campaigning in Israel on the grounds that it is too racist against Arabs. A senior PLO official says there won't be any new peace initiative until after the Israeli election. Pres. Abbas and Hamas leader Mishaal discuss reconciliation in a phone call. Abbas criticizes Hamas for not recognizing Israel and reminds them this was part of an earlier PLO-Hamas agreement. Palestinian labor leaders shut down UNRWA offices following layoffs and reduction of services. Hamas says it is going to start rebuilding its ministries and headquarters destroyed by Israel in the recent conflict. Palestinians in the occupied West Bank are developing rooftop gardens to grow food. Palestine's anti-corruption commission hopes to use international legal mechanisms in future prosecutions. The Gaza conflict is deterring Christmas religious tourism in Bethlehem. COMMENTARY: Carlo Strenger joins the chorus of voices saying Mishaal's Gaza speech played directly into the hands of PM Netanyahu. Douglas Bloomfield says while Mishaal openly opposes peace, Netanyahu and Abbas have policies that also undermine it. Abdullah Iskandar says Israel is deliberately keeping both Hamas and the PA weak and divided in order to rule over them. Yaron Ezrahi says the recent UN vote was an important turning point, reminiscent of what Israelis achieved in 1947. Yaakov Livne says Israel desperately needs better diplomacy. Rob Eshman says he's joined those who tire of hearing about a two-state solution. Jerome Segal says a more effective Arab Peace Initiative would center on the Israeli and Arab peoples, rather than their governments.

NEWS: Israeli occupation forces raid three Palestinian NGOs in the West Bank. Gaza tunnel smuggling is recovering from the recent conflict. FM Lieberman strongly attacks European criticism of Israel's settlement expansion plans. Extremists target a Jerusalem monastery and Palestinian cars in "price tag" attacks. Jordan says it plans to hold Israeli-Palestinian talks in February. Israel says it plans to withhold Palestinian revenues until at least March. In yet another reversal, a Hamas official insists Mishaal will not run for reelection as Politburo chief. The US plans to give Israel thousands of "bunker buster" bombs. Jordan's Prince Hassan is accused of "normalization" with Israel. The incoming Congress will be without several key members who were both supporters of Israel and advocates of peace. Pres. Abbas is visiting Turkey. Palestinians say they may consider international legal action if Israel persists with settlement expansion plans. Israeli occupation forces are preparing for an anticipated upsurge of violence in the West Bank. COMMENTARY: Harriet Sherwood says, despite Hamas' rhetoric and political gains, there is little to celebrate for the long-suffering people of Gaza. Natasha Mozgovaya says Jewish-American groups are divided on defending Israel's settlement plans. Ha'aretz says too many Israeli election laws invalidate Arab parties and candidates. Sefi Rachlevsky says the "messianic racist revolution that swallowed up Israeli Orthodoxy has now swallowed Likud." Amira Hass says Europe has a final opportunity to impact the course of the Israeli-Palestinian conflict. Yitzhak Benhorin says Israel's policies are alienating increasing numbers of Jewish Americans. Elias Harfoush says Mishaal's Gaza speech should be regarded as popular pandering, and Hamas needs a real strategy to move forward. Raphael Ahren says Palestinians will play a huge role in determining whether or not they develop an independent state.

NEWS: Israeli occupation forces raid three Palestinian NGOs in the West Bank. Gaza tunnel smuggling is recovering from the recent conflict. FM Lieberman strongly attacks European criticism of Israel's settlement expansion plans. Extremists target a Jerusalem monastery and Palestinian cars in "price tag" attacks. Jordan says it plans to hold Israeli-Palestinian talks in February. Israel says it plans to withhold Palestinian revenues until at least March. In yet another reversal, a Hamas official insists Mishaal will not run for reelection as Politburo chief. The US plans to give Israel thousands of "bunker buster" bombs. Jordan's Prince Hassan is accused of "normalization" with Israel. The incoming Congress will be without several key members who were both supporters of Israel and advocates of peace. Pres. Abbas is visiting Turkey. Palestinians say they may consider international legal action if Israel persists with settlement expansion plans. Israeli occupation forces are preparing for an anticipated upsurge of violence in the West Bank. COMMENTARY: Harriet Sherwood says, despite Hamas' rhetoric and political gains, there is little to celebrate for the long-suffering people of Gaza. Natasha Mozgovaya says Jewish-American groups are divided on defending Israel's settlement plans. Ha'aretz says too many Israeli election laws invalidate Arab parties and candidates. Sefi Rachlevsky says the "messianic racist revolution that swallowed up Israeli Orthodoxy has now swallowed Likud." Amira Hass says Europe has a final opportunity to impact the course of the Israeli-Palestinian conflict. Yitzhak Benhorin says Israel's policies are alienating increasing numbers of Jewish Americans. Elias Harfoush says Mishaal's Gaza speech should be regarded as popular pandering, and Hamas needs a real strategy to move forward. Raphael Ahren says Palestinians will play a huge role in determining whether or not they develop an independent state.

NEWS: A new US intelligence report predicts a Palestinian state will be created approximately along the 1967 lines, but possibly without a full peace agreement with Israel, by 2030. PM Netanyahu accuses the international community of "double standards," and claims settlements are no obstacle to a Palestinian state. Hamas calls for Palestinian national unity. The EU, though saying it is "dismayed" by Israeli settlement expansion plans, takes no action. PLO leaders call on the EU to review relations with Israel. Hamas bans Israeli-provided Internet services in Gaza. Approximately half of the Palestinian citizens of Israel may not be planning to vote in the upcoming election. Israeli occupation forces raid the offices of a Palestinian NGO in Ramallah and reportedly assault the staff at a Bethlehem school. Israeli occupation authorities say they will yet again demolish the access road to the West Bank village of Qarawat Bani Hassan. Israel's Foreign Ministry says it's launching a campaign to equate Pres. Abbas with Hamas. FM Lieberman says Palestinian police officers who clash with Israeli occupation troops "should not remain alive." The BBC looks at "unusual careers" for youth in Gaza due to the blockade. Sources say Khalid Mishal is preparing to retract his resignation as Hamas' leader. COMMENTARY: Alan Baker points out that no Palestinian state has been created. Reuven Pedatzur says the recent UN vote was the best in 65 years. Charles Freilich criticizes the policies of both Netanyahu and Abbas. Linda Heard says Mishal's Gaza speech only bolsters Israeli propaganda. Ophir Pines-Paz thinks Abbas has reached the end of the road politically. Frank Jacobs says Israel doesn't have to worry about running out of oil. Frida Ghitis says Israeli leaders need to start making more intelligent strategic decisions.

NEWS: PLO officials say they are launching a campaign to restart negotiations with Israel. Hamas celebrates its anniversary with a fiery speech by Politburo leader Mishaal, who vows never to recognize Israel. Many in Gaza, however, are in no mood to celebrate. The PA says it will allow a Hamas rally in the West Bank. PM Netanyahu says the event proves Israel's security is threatened, and Israeli security officials say Hamas is trying to reactivate "sleeper cells" in the West Bank. Concerns are growing in Israel about the prospects for another Palestinian uprising. Pres. Abbas appeals for urgent Arab financial aid. Arab states promise $100 million a month as a "safety net" for the PA. Many Palestinian political figures call for national unity. Some Israelis are comforted by the Iron Dome missile-defense system, while others see it as insulation from deep-seated problems. PA anti-corruption officials say they are following new leads in the Rashid case. Israeli occupation forces arrest 13 Palestinians in the West Bank. Qatar proposes the Arab League withdraw the Arab Peace Initiative. Israeli authorities say undercover antiterrorism units can only take action against Arabs, not Jewish settlers. The EU is reportedly mulling ways for pressing Israel not to go ahead with its planned E1 settlement expansion. COMMENTARY: ATFP Board member Saliba Sarsar says after the UN vote, Israelis and Palestinians need to look for new paths to reconciliation. Thomas Friedman says Israeli hawks risk self-fulfilling prophecies of danger for Israel. The LA Times says Israel's settlement expansion plans only hurt itself. Ha'aretz says Israel has to stop destroying Palestinian cisterns in the West Bank. Leon Wieseltier says he no longer believes Israel and the Palestinians will achieve peace in his lifetime. Eitan Haber says Mishaal's speech shows prospects for peace are receding. David Myers says there are many important parallels between where Palestinians are today and Zionists were in 1947. Jeffrey Goldberg says Australia's UN abstention shows Israel's international allies are greatly diminishing. James Carroll says everyone concerned about peace and Israel's future needs to oppose the E1 settlement plan. Paul Pillar says Mishaal's recent Gaza speech plays perfectly into the hands of Netanyahu. Peter Beinart worries that a second term Obama administration will choose a policy of "benign neglect" regarding the Israeli-Palestinian conflict. The National says Hamas is failing the Palestinian people.

NEWS: Hamas leader Mishaal makes his first visit to Gaza in 45 years. The visit is widely regarded as a sign of Hamas' growing regional acceptance and wider ambitions. Israel is seen as more openly dealing with Hamas, though still within strict limits. Israel reportedly threatens to cancel the ceasefire if the leader of Islamic Jihad visits Gaza. Human Rights Watch says Israel's attack on the Daloo family home in Gaza during the recent conflict, which killed 12 civilians, was unlawful. Palestinian officials say Jordan's King Abdullah II has passed on US assurances that it will not allow Israel to go forward with controversial new settlement plans. Chancellor Merkel reportedly also urges PM Netanyahu not to implement the plans. Even Canada reportedly warns Israel against the plans. 20 are injured in skirmishes between Israeli occupation forces and Palestinian police near Hebron. Israel's Ministry of Education suspends a literature program for fifth graders that includes a novel by Palestinian writer Ghassan Kanafani. A new guidebook is published in Israel to Palestinian villages destroyed after the 1948 war. Palestinian refugees are being increasingly drawn into the war in Syria. Rabbis at a prominent New York synagogue express "regret" for praising the Palestinian UN upgrade vote. COMMENTARY: Ma'an explains why several Pacific islands voted against the recent Palestinian UN upgrade. Sandy Tolan says both Pres. Obama and Israel are walking away from a two-state solution. Menachem Klein says the E1 settlement plan is "recycled and oppressive." Ilan Baruch says Palestinian reconciliation could set the stage for a new phase in the peace process. Alex Fishman says Israel is conducting regular, secret negotiations with Hamas. The Media Line profiles Khaled Jarrar, whose art is based on concrete pieces cut from Israel’s separation barrier.Nathan Jeffay says many Israelis suspect the government's announced E1 settlement plan is a bluff. George Hishmeh asks what's holding Pres.Obama back from confronting Israel. Gil Troy says both Netanyahu and Pres. Abbas are pandering to extremes.

NEWS: Israel's relations with Europe are at a low point in many decades, but experts believe this is unlikely to lead to a widespread boycott of settlement goods. PM Netanyahu visits Germany as ties are strained over lack of progress on peace. Israel bars a dissident Jewish Israeli academic from a diplomatic event in Germany. Jordan's King Abdullah II visits the West Bank. Israel and the Palestinians both harden their position on proposed settlement expansions. Hamas leader Meshaal may visit Gaza on Friday, as speculation grows Israel may increasingly try to talk to him. In retaliation against the Tunisian Foreign Minister's visit to Gaza, Israel bars a Tunisian diplomat from resuming his post in Ramallah. Palestinians say Israel must be held accountable for settlement activity by the international community. Ordinary Palestinians quickly find the UN upgrade hasn't changed anything on the ground. Hamas says it wants to establish the first ever Palestinian "Defense Ministry." COMMENTARY: ATFP Executive Director Ghaith Al-Omari and David Makovsky of WINEP discuss Israel's settlement expansion on PBS' NewsHour. The LA Times says Israel's retaliation against the Palestinians, especially building the E1 settlement, only hurts itself. Ma'an interviews FM al-Maliki. Ari Shavit says the political right is becoming so extreme it is dangerous to Israel. Yossi Verter says Deputy FM Ayalon has been thrown off of his party list because he would not obey commands to keep quiet. Shaul Arieli says Ben Gurion and other early Israeli leaders understood an Israeli state is only possible next to a Palestinian one. Ami Ayalon says Palestine's UN upgrade presents an opportunity to revive peace talks. Shimon Shiffer says ordinary Israelis will pay the price for a collapse in relations with Europe. Shlomo Ben-Ami says Israel needs to launch a vigorous new peace initiative. Noam Sheizaf says Israel is addicted to the status quo. Lara Friedman outlines ways Pres. Obama can "get tough" with Netanyahu. Akiva Eldar says Israel's settlement expansion plans are meant to "punish" the US as well as the Palestinians.