PA 1 Feb set local elections for 9 June, 12 Feb declared Sept parliamentary and presidential elections; Hamas rejected calls, said national reunification must precede elections. PA’s cabinet dissolved 14 Feb; Salam Fayyad retained as PM. U.S. 18 Feb vetoed UNSC resolution condemning Israel’s settlement policy, all 14 other members backed measure; Obama administration said veto not support for further settlement construction. Saeb Erekat, PLO’s chief negotiator, 12 Feb resigned taking responsibility for Palestinian Papers leaked from his office. Israeli PM Netanyahu 12 Feb welcomed declaration by Egypt’s new military rulers that they would honour peace treaty; but 16 Feb said Israel had to “prepare for the worst” (see Egypt). Increased clashes along Gaza border late month, including 23 Feb rocket attack on southern city of Beersheba, first attack on city since 2009 Gaza war; Israeli PM Netanyahu 24 Feb warned Hamas not to test Israel’s resolve. Netanyahu 19 Feb accused Iran of exploiting Mideast unrest to increase its influence by sending 2 naval ships to Syria through Suez Canal (see Iran).

Al Jazeera 23 Jan published leaked internal Palestinian documents related to peace process. PM Netanyahu 31 Jan said he feared Egypt could end up with radical Islamic regime like Iran; agreed for Egyptian soldiers to move into Sinai peninsula for first time since 1979 peace treaty (see Egypt). In Gaza, war of attrition between Israel and Hamas heightened. Number of rockets fired into Israel increased slightly; many now aimed directly at military positions, densely populated areas. IDF increased military activity in Gaza, including 6 Jan shooting of 2 Palestinian men near border and 11 Jan missile strike that killed Islamic Jihad militant. Hamas 13 Jan ordered security forces to ensure other groups in Gaza observe truce on firing rockets at Israel; day earlier factions agreed to “national understanding” on not provoking strong reaction from Israel. Defence Minister Ehud Barak and 4 other Labor party MKs 17 Jan withdrew from party, established centrist faction “Independence”; new faction remains part of coalition, Barak retained defence portfolio.

U.S. formally abandoned efforts to persuade Israeli PM Netanyahu to extend partial settlement freeze as basis for peace talks; Sec State Clinton 11 Dec announced Washington instead would pursue proximity talks dealing with core issues towards a Framework Agreement. Fatah-PFLP joint statement 22 Dec said they would not hold talks with Israel, in any format, without complete halt to settlement activity and defined terms of reference. Brazil, Argentina, Ecuador and Bolivia recognised independent Palestinian state “on the 1967 lines”. Other Latin American countries expected to follow; Israel 7 Dec warned unilateral recognition only hurts peace process. Israeli Security Cabinet 8 Dec decided to ease ban on exports from Gaza but not to Israel. Surge in cross-border violence during month; dozens of mortars fired from Gaza, in response IDF launched series of air raids including 18 Dec strike that killed 6 Palestinians in Central Gaza. Hamas senior leader Mahmoud Al-Zahar 24 Dec said group committed to ceasefire if Israel abided by it, though smaller groups continue to launch attacks.

U.S. offered incentive package to Israel in return for limited 90-day construction moratorium in hope of reviving Mideast peace talks; details still being discussed. Israeli govt 8 Nov announced plan to build nearly 1,300 apartments in E Jerusalem; U.S. official said construction “counter-productive”. Israel 17 Nov agreed to troop pullout from northern half of disputed border village in Golan Heights fulfilling part of 2006 truce agreement. Israeli parliament 22 Nov approved law requiring two-thirds Knesset majority or national referendum for withdrawal from E Jerusalem or Golan Heights. Palestinian militant killed 3 Nov in targeted Israeli airstrike in Gaza City. In response to rocket fire 19 Nov Israeli warplanes struck 4 targets in Gaza, injuring at least 4. Israel 22 Nov began work on 140km border fence with Egypt to stop Islamic militants and African migrants. UNRWA director in Gaza 11 Nov said “no material change” for people of Gaza since Israel eased blockade. Hamas and Fatah discussed reconciliation in Damascus 10 Nov but talks deadlocked on security issues; sides agreed to meet again.

PA President Abbas, supported by Arab League, 9 Oct announced U.S. had 1 month to persuade Israel to halt settlement building or recently restarted direct peace talks would collapse. Israeli PM Netanyahu 11 Oct made offer to revive deadlocked talks, freeze settlement building if Palestinians recognise Israel as the nation-state of the Jewish people; Palestinians immediately rejected declaration. Settlers 27 Oct accused govt of imposing “silent freeze” by delaying approval of some 4,300 West Bank apartments. Israeli cabinet 10 Oct approved bill requiring new non-Jewish citizens to pledge loyalty oath to “Jewish” state; PM Netanyahu 19 Oct ordered bill to include all new citizens. 3 militants killed, 6 injured by airstrikes in West Bank responding to mortars fired toward Israel. 2 Hamas commanders, suspected of 31 Aug murder of 4 Israeli civilians, killed 8 Oct in IDF raid in West Bank town Hebron. Netanyahu 17 Oct announced renewal of negotiations through German mediator on release of captured IDF soldier Gilad Shalit; Hamas leaders argued renewed contact insignificant and unlikely to yield deal. Clashes 27 Oct between police and Arab Israeli protestors in town of Umm el-Fahm following march by Jewish extremists against Islamic Movement. Prominent Arab Israeli activist Amir Makhoul who admitted to spying for Hizbollah sentenced 27 Oct to 10 years.

12-month U.S.-mediated direct peace talks launched 2-3 Sept in Washington; sides agreed to meet every 2 weeks beginning 14-15 Sept in Egypt. Future of talks in balance after Israeli PM Netanyahu 26 Sept declined to extend 10-month moratorium on settlement construction despite international pressure, urged PA President Abbas to continue talks; Abbas 27 Sept delayed decision on continuation of talks until 4 Oct Arab League meeting. Leaders of Hamas and 12 other armed groups 2 Sept threatened new wave of attacks against Israel. Increased rocket and mortar fire from Gaza into Israel. 8 rockets, 1 mortar fired 15 Sept, highest daily total in over 1 year; at least 9 Palestinians killed in Israeli military responses. PA security forces arrested hundreds of Hamas-linked operatives in West Bank early Sept following 31 Aug Hamas killing of 4 Israeli civilians, 1 Sept wounding of 2 civilians. UNHRC 22 Sept accused Israel of violating international law in 31 May raid on Turkish-owned aid flotilla; Israel denounced accusations.

Israel PM Netanyahu and PA President Abbas agreed 20 Aug to restart direct peace talks beginning 2 Sept with 2 day peace summit in Washington, first direct negotiations in 20 months. Egyptian President Mubarak and Jordan’s King Abdullah also invited; however, Palestinian chief negotiator Erekat warned Palestinians would withdraw if settlement construction resumed after scheduled 26 Sept end to 10-month limited moratorium on building. Hamas’ military wing claimed responsibility for killing of 4 Israelis 31 Aug near Hebron, West Bank; U.S. condemned attack, warned “enemies of peace” would attempt to disrupt peace talks. Senior Israeli officer, at least 2 Lebanese soldiers, 1 journalist killed in 3 Aug border clash between IDF and Lebanon army; UNIFIL 25 Aug report reiterated 4 Aug conclusion that IDF soldiers were on Israeli side of UN-defined border. Israel 2 Aug announced decision to cooperate with UN investigation into 31 May deadly raid on Turkish-owned aid flotilla; Deputy PM  Meridor  3 Aug said choice was made “primarily” to improve Israeli-Turkish relations. 2 IDF soldiers injured 17 Aug by mortars fired from Gaza; in response Israeli Air Force 18 Aug bombed suspected weapons manufacturing site and 3 smuggling tunnels.

PA president Abbas 29 July refused to move to direct negotiations until Israel agrees “in principle” to a framework for negotiations including “third party” taking on a security role; decision endorsed 29 July by Arab League. In largest attack since 2008/09 Operation Cast Lead in Gaza, Israel 30 July hit 5 targets in Gaza killing Hamas senior military commander Issa Batran, injuring 11; strike in response to 30 July rocket attack on Ashkelon. Israel 5 July published “blacklist” of goods not allowed into Gaza, mainly weapons and dual-use materials; UN Special Coordinator Serry welcomed measure as “important steps in the right direction”. Israeli military investigation into 30 May deadly assault on Gaza-bound aid flotilla concluded 12 July there were “no failures, but mistakes were made”; UNHRC 24 July appointed 3-member independent flotilla inquiry panel, report due Sept. New Israeli report submitted to UN 19 July on Operation Cast Lead said IDF is “taking steps” to reduce civilian casualties, will restrict use of white phosphorous in future. Israel 13 July razed inhabited Palestinian home in East Jerusalem, ending unofficial 8 month demolition freeze. IDF 22 July killed Palestinian man entering Jewish settlement in central West Bank; 1 Islamic Jihad militant killed, 7 people injured 21 July by IDF in Gaza border zone; 1 woman killed, 5 injured 13 July by IDF shell in Gaza.

Israel faced widespread international criticism following 31 May death of 9 Turkish activists during Israeli raid on aid shipment to Gaza; tenth died later. Turkish President Gul 17 June threatened to freeze relations, impose sanctions. Turkey 27 June barred Israeli military flight from Turkish airspace, future military flights to be considered on case-by-case basis. Israeli cabinet 14 June approved commission for inquiry into raid, including 2 foreign observers; UNSG Ban 18 June criticised panel as lacking international credibility. PM Netanyahu 20 June announced easing of Gaza blockade to let in “civilian goods” but requiring monitoring for dual-use materials; described by U.S. as “welcome step”. Palestinian gunmen 14 June killed 1 police officer, wounded 2 near Hebron, W Bank. Israeli Navy 7 June killed 6 members of al-Aqsa Martyrs Brigade off Gazan coast. 3 Hamas supporters killed in airstrike 1 June in Beit Lahiya, suspected of firing 2 rockets into Ashkelon area. 17 July W Bank elections postponed 19 June because of Fatah failure to agree on election lists. U.S. envoy Mitchell conducted 2 rounds of proximity talks during month with Israel, PLO.

At least 9 people reported killed 31 May by Israeli soldiers boarding flotilla carrying activists, aid to Gaza; full details not yet clear. UNSC 1 June condemned “those acts which resulted in the loss of at least ten civilians” and called for “credible and transparent investigation”. Israeli PM Netanyahu cancelled Washington visit, gave full backing to action of Israeli troops. Israel said soldiers acted in self-defence, accused convoy of “premeditated” provocation, campaigners denied accusations. Palestinian Authority (PA) President Abbas condemned incident as “massacre”. Turkey withdrew ambassador, called Israeli actions “murder by a state”. Followed 9 May start of U.S.-mediated indirect talks between Israel, PA after 17-month halt in negotiations. Netanyahu 21 May spoke of possible goodwill gestures towards Palestinians. Announcement of talks followed by rocket attacks on southern Israel from Gaza 8 May, Israeli bombing of targets in response. At least 12 injured in 25 May airstrikes in Gaza in response to 24 May rocket and mortar attacks. IDF troops 21 May killed 2 Islamic Jihad militants near Kissufim crossing; 14 May shot dead Palestinian civilian near border fence; 2 suspected militants killed by IDF 1 June after entering Israel from Gaza. Palestinian youth killed by Israeli settler in West Bank 14 May.