NEWS: The World Bank says the Palestinian fiscal crisis is intensifying. Various scenarios face Pres. Abbas in the context of the emerging crisis. The Israeli military holds its largest snap drill in many years. The PA criticizes Egypt for hosting a Hamas leader. Like Mitt Romney, many in the Middle East are losing confidence in the prospect of a two-state solution. Abbas says he will deliver a speech at the UN in September asking for nonmember observer state status for Palestine. A Palestinian militant-turned-theater director detained by PA security forces has resumed a hunger strike. Israeli settlements keep expanding despite the evacuation of a tiny “unauthorized” outpost. An advisor to Pres. Morsy says amending the peace treaty with Israel is "only a matter of time.” COMMENTARY: David Sanger says Romney's recent comments could prove problematic if he is elected president. Khaled Diab describes Palestinians and Israelis jointly visiting Israel's Holocaust Memorial. Zvi Bar'el looks at a new Israeli book about Hamas. Eitan Gilboa says Israel would be wise not to interfere in US politics. Chris McGreal says PM Netanyahu has successfully made Iran the only Middle East issue in the United States. Walid Khadduri says energy security is a priority for Israel. Hani al-Masri says restructuring the PLO is the key to Palestinian unity. David Rothkopf says Netanyahu has exposed the fallacy of an all-powerful “Israel Lobby.” Aaron David Miller asks if Romney can be trusted with Middle East policy. Tony Karon says Palestinians are used to unfair attacks such as those in the recently released Romney video.

NEWS: The IMF issues a strong warning on the state of the Palestinian economy, saying it poses a "high risk" of continued social unrest in the occupied West Bank.The PA plans to tell donors at an upcoming meeting that the economic status quo is unsustainable. Experts say the stability of the PA is gravely threatened by its ongoing financial crisis. A new Palestinian opinion poll suggests a strong link between economy and security. The New York Times profiles Israeli Amb. Michael Oren. A pro-Hamas bloc wins union elections among UNRWA employees in Gaza. In a recently released surreptitiously filmed video at a fundraiser, Mitt Romney suggests peace is almost impossible to accomplish and this is entirely the fault of the Palestinians. PLO leaders say they are looking at the possibility of canceling the Oslo agreements with Israel, as UN officials say a 2-state solution is becoming more remote. The controversy grows over Islamophobic and anti-Semitic sentiment at California universities. A Gaza-based poet remembers the Sabra and Shatila massacre. IPS profiles Palestinian Paralympians. Palestinians in Ramallah stage a peaceful protest against a controversial anti-Islam online video. Tobias Buck profiles Rawabi, the first ever planned Palestinian city. COMMENTARY: The Washington Post says it would be extremely risky for Palestinians to renew a UN bid. Yossi Verter says PM Netanyahu is perceived as campaigning on behalf of Republicans. Linda Gradstein says US-Israel tensions are exaggerated. Nathan Jeffay asks what Israel would do without the PA and Pres. Abbas. Samuel Berger worries that Romney may be adopting Netanyahu's “dangerous timetable for war.” Daniel Drezner is dismayed by Romney's videotaped comments about Israel and the Palestinians. Hussein Ibish defends his critique of Israel's new campaign on Jewish refugees and migrants from the Arab world.

NEWS: On American TV, PM Netanyahu makes the case for war against Iran. On the Jewish new year, many Israelis express concern about the possibility of war. A Hamas court sentences four Salafist extremists to death over the killing of an Italian activist. An all-female bloc is running in local Palestinian elections. Hamas claims an investigation has discovered that no Palestinians in Gaza were connected to an attack on Egyptian forces in Sinai. An Egyptian soldier is killed in a new clash with extremists in Sinai. Palestinians complain that 30 years after the massacre at the Sabra and Shatila refugee camps in Lebanon, no one has been brought to justice. Palestinian trade unions are divided over the prospect of a new strike. The EU pledges €100 million for the PA. Former Israeli military intelligence chief Yadlin says the country would need international and American support before any attack against Iran. PM Fayyad posts a protest song calling for his resignation on his own Facebook page. The BBC looks at Jewish Israeli extremists who engage in “price tag” violence. Israelis defend their campaign on Jewish refugees as a way of “counteracting” the Palestinian refugee issue. COMMENTARY: Seth Anziska says American pressure might have prevented the massacre at Sabra and Shatila. Robert Fisk recalls the massacre. Aaron David Miller says the upcoming election won't change US Middle East policy much. Hamas leader Zahhar claims Gaza is "free of occupation" and more secure than the West Bank. Former US Amb. Indyk says he thinks the US may go to war with Iran in 2013. Mya Guarnieri says Israel's mistreatment of migrants doesn't stop at the border. Pierre Klochendler looks at a home in occupied East Jerusalem divided between Palestinians and settlers. Michael Melchior claims a surprisingly wide range of Islamists are ready for peace and coexistence with Israel. Ben Sales looks at the political implications for Israel and the PA of the Palestinian economic crisis.

NEWS: An Israeli court rules in favor of settlers in a dispute over a house in occupied Hebron. PM Netanyahu denies he is trying to meddle in US electoral politics. Israelis in Tel Aviv seem unconcerned by the threat of missiles. Palestinian negotiators mourn the death of Amb. Stevens, describing him as a good and fair man. The Israeli military persists in repeatedly destroying a Bedouin village in the Negev. A small group of protesters in Gaza hold their own demonstration against an anti-Muslim film. Israeli Bedouins may join the protest movement as well. Palestinians and Israelis are taking foreigners on “dual narrative” tours of the "holy land." Palestinian families in occupied East Jerusalem decry the lack of proper schooling facilities. COMMENTARY: Eric Lewis says, for all his talk about American exceptionalism, Mitt Romney seems willing to allow Netanyahu to dictate a conflict with Iran. Charles Krauthammer says Pres. Obama has abandoned Israel. The Forward says Netanyahu has come perilously close to making Israel a US election issue. Rachel Shabi says Israel should understand the power of words, as well as weapons, in the new Middle East. JJ Goldberg draws three lessons from the controversy over Jerusalem in the DNC platform. Avi Issacharoff says West Bank protests this week demonstrated that Netanyahu's concept of “economic peace” is hollow. Ashraf al-Ajrami says, even amid protests, Palestinians must remain united. Khaled Abu Toameh says the protests were an attempt by elements within Fatah to get rid of PM Fayyad. Xinhua says 19 years after the signing of the Oslo Accords, peace between Israel and the Palestinians seems no closer. Jon Donnison says, one year after the failed UN bid, Palestinians have all but disappeared from the world stage.

NEWS: While the PA says it's canceling tax increases to meet the demands of protesters, union leaders say demonstrations will continue. Protests in Ramallah continue, and focus on criticism of Palestinian leaders, especially PM Fayyad. Israeli officials say the US has refused a request by PM Netanyahu to meet Pres. Obama next month, although the White House plays down the report. Netanyahu orders the release of Palestinian tax revenues to the cash-strapped PA. Hamas leader Hanniyeh is visiting Egypt. Six Jewish Israeli teenagers are charged in an attack on a Palestinian man in Jerusalem. Israel is ranked the second-best educated country in the OECD. Hamas sentences a man in Gaza to death for collaboration with Israel. Palestinians who have fled Syria protest against conditions in a Lebanese refugee camp. The US is reportedly attempting to dissuade Palestinians from seeking non-member observer state status at the UN in September. COMMENTARY: Daniel Levy says Israel really does have to confront the choice between continuing the occupation and becoming a single, democratic state. Saud Abu Ramadan says both a free-trade agreement with Egypt and continued smuggling through tunnels would benefit Hamas. Amira Hass says the PA serves everyone except its own public. Oudeh Basharat says Israeli journalists show more sympathy for tomatoes than they do for Arabs. Moshe Arens says the US-Israel relationship doesn't depend on individual politicians. Steve Caplan says attempts to boycott Israeli academics and scientists are hypocritical and counterproductive. Ron Kampeas says US-Israel tensions regarding Iran are boiling over. David Amitai says Israel's Jews and Arabs are united by food, if nothing else. Mairav Zonszein says a new study shows violence begets violence among Israeli and Palestinian children.

NEWS: PM Fayyad announces new economic measures in response to Palestinian protests at the rising cost of living in the occupied West Bank. The protests have focused on the PA leadership, and are beginning to turn violent, but no injuries are reported yet. Palestinian leaders are looking for ways of improving the economic situation. Pres. Abbas says Israeli restrictions are impeding an effective response to the economic crisis. The PA says it is working to facilitate the creation of an industrial zone in Jenin. Palestinians say Israel intends to confiscate land near Nablus for a new settler bypass road. Israeli officials complain about US policy towards Iran. PM Netanyahu suggests the United States has no right to restrain Israel from attacking Iran. UN officials criticize both the blockade of Gaza and rocket attacks against Israel. Israel is creating a new police unit to combat “price tag” violence against Palestinians. Hamas says it has agreed to create a joint security committee with Egypt. Israel instructs its diplomats to raise the issue of Jewish refugees from the Arab world in Israel to “counteract” the Palestinian refugee issue. India reiterates its support for Palestinian independence. Israeli and Palestinian women launch a joint business in handicrafts. The tax exempt status of the Zionist Organization of America has reportedly been revoked. COMMENTARY: Akiva Eldar says a new study demonstrates that Palestinian citizens of Israel and Palestinians living under Israeli occupation have developed separate narratives, and, in a separate column, he argues that those who have given up on the two-state solution are surrendering to defeatism. The Jerusalem Post claims that Palestinians and other Arabs are not only responsible for the Palestinian refugee problem, but also for Jewish refugees in Israel from the Arab world. Sophie Claudet and Saleh Jadallah doubt Pres. Morsy will adopt substantially new policies towards Gaza.

NEWS: A new UN report details poverty in Gaza. Palestinians continue to protest rising prices, as truck drivers block streets. Israeli officials rule out Palestinian requests to modify the Paris Protocol to ease economic woes. The PA says public employees will receive half pay on Wednesday. Protesters call on Pres. Abbas to resign. PM Fayyad says the protests demonstrate the PA's commitment to freedom of expression. A rocket fired from Gaza hits a house in southern Israel, causing damage but no injuries. Israel will compensate a Palestinian family which lost two sons in the 2009 Gaza war. Israel's Cabinet votes to upgrade the status of a school in a West Bank settlement to that of an officially recognized “university.” Palestinian children in occupied Hebron face serious challenges in returning to school. Some Palestinians in Jordan are threatened with losing their citizenship. Palestinian refugees in Lebanon suffer from long waits for medical care. COMMENTARY: Saud Abu Ramadan argues Salafist militants in Gaza are trying to drag Hamas into a war with Israel. Adam Gonn says there's a direct connection between a potential renewed Palestinian UN bid and the urgent need for economic relief. Amira Hass says Palestinians should remember their problems mainly stem from the occupation. Hagai Segal says the settlers have won the battle for the West Bank against Israeli moderates and the Palestinians. Alon Liel says Israel is repeating its “low stool” diplomatic tactics used against Turkish officials with US Amb. Shapiro. Salman Masalha says it's ridiculous that anybody involved in the Oslo Accords ever got a Nobel Peace Prize. Eric Yoffie says it won't matter much to Israel whether Pres. Obama is reelected or Mitt Romney wins the presidency. Robert Turner says the new UN report shows the urgent need to lift the blockade of Gaza. The National encourages the Palestinians to seek greater recognition at the UN. Tariq Alhomayed says it is political buffoonery for Arabs to allow Hamas and Hezbollah to thrive while the PA is on the brink of bankruptcy. Dan Ephron profiles Israel's powerful and growing settler movement.

NEWS: Palestinian protests against high prices continue. Palestinian taxi drivers clog roads as part of the protests. PM Fayyad says he is ready to resign if need be. Hamas says it will pursue Salafists in Gaza from “street to street.” Seven more Palestinians are killed in Syrian government shelling of the Yarmouk refugee camp. A Palestinian man is assaulted in Jerusalem in another suspected hate attack. House Intelligence Committee Chair Rogers confirms the US-Israel dispute over Iran policy. DM Barak says Israel reserves the right to take action on its own against Iran. A new poll suggests that most Jewish Israelis are optimistic about the future but Palestinian citizens are concerned. Pres. Morsy meets with Pres. Abbas. An Israeli oil company is asking the PA for permission to drill in the occupied territories. PM Netanyahu and US Amb. Shapiro reportedly had a harsh exchange of views on Iran last month. COMMENTARY: Hussein Ibish argues that the new Israeli campaign on Jewish refugees and migrants to Israel from the Arab world is cynical and unhelpful. Ahmad Majdoubeh says if there is a "Palestinian Spring" at hand, it's because of the divisions between Fatah and Hamas. Dominique Moisi says Palestinian and Jewish citizens have found a way to work together in medicine. George Hishmeh says the United States should work to build a nuclear-free Middle East. Ithamar Handelman-Smith says all of Israeli society is responsible for the attempted lynching of a Palestinian in Jerusalem. Khaled Diab says the plight of Bedouin children represents the threat Israel's occupation poses to all Palestinian students. Yoaz Hendel says the United States is naturally placing its own interests ahead of its friendship with Israel. Stuart Eizenstat and Lester Crown both say Pres. Obama has demonstrated his commitment to Israel's security "in countless ways." Eshkol Nevo says Jewish Israeli "price tag" violence is not just a disgrace, it's a national security threat. Chris McGreal says the DNC reversal on Jerusalem demonstrates what a low priority Middle East peace talks now are for the United States. Yossi Verter says Barak now opposes an attack against Iran. Eyal Chowers says the 1937 Peel Commission report still has much relevance for Israel and the Palestinians. Henry Siegman says Israel has destroyed the two-state solution and only serious Palestinian masures can revive it.

NEWS: Six Palestinian militants are killed by Israeli airstrikes in Gaza. The UN says Palestinians are slipping deeper into poverty. The PA financial crisis continues to deepen. Palestinian sources tell Xinhua some factions in the West Bank, without naming them, are inciting people to protest against PM Fayyad. President Abbas says the “Palestinian spring” has begun. Hamas is trying to regain its popularity in Gaza. The PA says it has arrested suspects in the assassination of a senior security official in Jenin. Hamas is training its diplomats in preparation to challenge the PLO internationally. Israel agrees to pay damages to the family of a Palestinian detainee left to die on a highway. Three French magistrates investigating his death are planning to exhume the body of the late Pres. Arafat. Following a controversy, the Democratic Party platform restores language saying Jerusalem is Israel's capital. A new study suggests gaps may be growing between Palestinian citizens of Israel and those living under occupation. COMMENTARY: Rami Livni says Israel must end the occupation, not for the Palestinians but for itself. Anshel Pfeffer says there are further signs that Israel will not be attacking Iran any time in the foreseeable future. Yariv Oppenheimer says everything Israel has constructed in the occupation is reversible. The Jerusalem Post says Israel must be tough with the Palestinians regarding electricity payments. Douglas Bloomfield says a lot of Israeli rhetoric about attacking Iran may be designed to make the reelection of Pres. Obama more difficult. Asharq Al-Awsat interviews Ghazi Hamad, "Deputy Foreign Minister" for Hamas, about the organization's diplomatic initiative. Crispian Balmer says that Israel is backing down from threats against Iran after being rebuked by the United States. Alon Pinkas says in spite of PM Netanyahu's mistakes, there is no “crisis” with the United States. Laura Rosen outlines the process whereby the DNC platform reintroduced Jerusalem into its text. Daniel Seidemann and Josh Rogin separately also examine the controversy. Aaron David Miller says the controversy is silly and irrelevant.