U.S. Sec State Clinton 30 Apr announced U.S.-mediated indirect talks between Israel, Palestinian Authority (PA) would begin early May. Israeli PM Netanyahu reportedly agreed to partially meet U.S. requests in order to revive process; PA President Abbas also said ready for return to talks following U.S. envoy Mitchell’s 22-25 Apr visit to region. Rights groups criticised 13 Apr military order enabling deportation from West Bank of Palestinians without correct Israel-issued ID. Extremist settlers 21 Apr clashed with Israeli soldiers blocking them from entering Palestinian village near Nablus. 70 far-right Jewish activists held march through Silwan, East Jerusalem, 25 Apr. Hamas militant killed by Israeli troops in 26 Apr operation near Hebron. Israeli airstrikes hit Gaza Strip 2 Apr after rockets from Strip hit S Israel. Israeli troops 13 Apr killed at least 2 Islamic Jihad members near Gaza border fence; 16 Apr shot dead alleged militant, 28 Apr killed protester near fence. Hamas authorities ordered closure of smuggling tunnels to Egypt 13 Apr after Israel warned of threat from Gaza to kidnap citizens in Sinai.

Tension in U.S.-Israel relations emerged after plan to build 1600 homes in E Jerusalem announced during 9-10 March visit by U.S. VP Biden. Biden, Sec State Clinton, senior Obama aide strongly condemned announcement; Palestinian Authority said no longer willing to participate in U.S.-brokered indirect talks previously approved by PLO, Arab League. Talks between Israeli PM Netanyahu and President Obama in Washington 23-24 March failed to resolve disagreement. Middle East Quartet at 19 March Moscow meeting called for Israel to freeze settlement activity, negotiations to achieve two-state solution within two years. Palestinians clashed with Israeli forces in E Jerusalem and W Bank, including widespread riots in Jerusalem 16 March; 4 youths killed by Israeli soldiers in 2 incidents near Nablus 20, 21 March. Israel imposed closure on W Bank 12-17 March. Rockets fired into Israel from Gaza 18 March killed migrant worker; several Israeli airstrikes hit strip 19-24 March. 2 Israeli soldiers, at least 1 militant killed in 26 March clash between troops, gunmen inside Gaza border near Khan Yunis; Israeli tanks subsequently entered strip. Israeli troops fired on Palestinian Land Day demonstrators near southern Gaza border fence 30 March. EU foreign policy chief Ashton, UNSG Ban visited Gaza 18, 21 March; Ban called for Israel to end blockade of strip.

Near-daily clashes between Palestinian protestors and IDF in Hebron after Israeli PM Netanyahu 21 Feb added Tomb of Patriarchs/ Ibrahimi Mosque and Rachel’s Tomb near Bethlehem to national heritage list. Israeli police, Palestinian protestors clashed at Jerusalem Temple Mount/Noble Sanctuary 28 Feb. PA President Abbas early month sought clarification from U.S. about nature of “proximity” talks with Israel proposed by U.S. in Jan; 15 Feb said he would discuss proposal with Arab League amid reports he is seeking broader Arab backing for any return to talks. UK, Ireland, France Germany and Australia summoned respective Israeli ambassadors during month after Dubai police said 26 suspected Mossad agents allegedly involved in Jan assassination of Hamas commander travelled on fake European and Australian passports. Palestinian allegedly preparing to attack Gaza Karni border crossing killed by Israeli airstrike 11 Feb. Hundreds attended 5-year anniversary of weekly protests against W Bank barrier at Bilin 19 Feb; Israel 12 Feb began implementing 2-year old Supreme Court order to reroute part of barrier.

Efforts to restart Israeli-Palestinian peace talks produced no breakthrough despite U.S. envoy Mitchell’s 21 Jan visit; Mitchell urged Palestinians to resume talks, presenting new plan, reportedly accepted by Israel, giving PA greater control of W Bank, facilitating entry of materials into Gaza. Fatah Central Committee, PLO Executive Committee mid-month backed PA President Abbas’s refusal to restart negotiations in absence of complete settlement freeze. Netanyahu 10 Jan told coalition members settlement construction would resume at end of current 10-month partial freeze; 24 Jan insisted several settlement blocs to remain part of Israel “for eternity”. 24 Jan expiration of Palestinian parliament’s term sparked renewed Fatah-Hamas tension. In 29 Jan written response to Goldstone report, Israel denied violating international law during Gaza war, ignored report’s call for independent investigation. UN 22 Jan said Israel had paid $10.5m for damage to UN property in Gaza war. 9 Palestinians killed 5-10 Jan in Israeli airstrikes on Gaza Strip amidst increased rocket fire into S Israel during month.

Israeli settlers confronted security forces, building inspectors enforcing partial settlement freeze announced late Nov by Israeli PM Netanyahu; about 10,000 settlers, supporters rallied in Jerusalem 10 Dec, pledged to defy temporary building ban. 11 Dec arson attack on mosque in Yasuf, W Bank, by Jewish extremists. Israeli soldiers 26 Dec shot dead 3 Palestinian militants in Nablus suspected of killing Jewish settler 2 days earlier. Palestinians, U.S. officials 28 Dec criticised Israel’s plan to build 700 new housing units in E Jerusalem. EU FMs 8 Dec called for Jerusalem to be capital of both Israel and future Palestinian state, said would only recognise changes to 1967 borders agreed by both parties. PLO 16 Dec indefinitely extended terms of Palestinian Authority President Abbas and paralysed PA legislative council, despite Hamas criticism. 4 Palestinians reported killed by IDF in separate incidents at Gaza border 12, 26 Dec. Hundreds of Palestinian, foreign activists protested against Israeli Gaza blockade at Erez border crossing 31 Dec.

Citing stalled U.S. peace initiative, Palestinian Authority President Abbas said early month he would not run for re-election; 20 Nov said elections scheduled for Jan 2010 would be postponed because Hamas refused to participate. Palestinian chief negotiator Erekat 15 Nov announced plan to unilaterally seek UNSC endorsement of Palestinian state, but backtracked after U.S., EU called move premature; Israeli PM Netanyahu said Israel would respond with own unilateral steps, called for talks. Palestinians rejected 10-month freeze on new settlement construction announced by Netanyahu 25 Nov; decision excludes E Jerusalem and 3,000 housing units already under construction or approved. U.S. envoy Mitchell said move “falls short” of complete freeze but could advance peace efforts. U.S. President Obama condemned 17 Nov Israeli approval of 900 new homes in E Jerusalem Gilo settlement. UNGA 5 Nov passed resolution drafted by Arab states endorsing Goldstone report accusing Israel, Hamas of war crimes and possible crimes against humanity in Dec-Jan Gaza war. Israel 20 Nov arrested 5 members of Palestinian security forces in W Bank. Israeli army killed 1 Palestinian at Gaza border 13 Nov; 13 injured, 1 reported killed in 18, 22, 27 Nov Israeli airstrikes on Gaza smuggling tunnels, alleged weapons factories following rockets fired into S Israel. Late month reports that Israel, Hamas nearing deal to trade captured Israeli soldier Shalit for some 1,000 Palestinian prisoners.

U.S. push to revive Israeli-Palestinian peace talks produced no breakthrough despite 22 Sept New York meeting between President Obama, Israeli PM Netanyahu, Palestinian PM Abbas; meeting came after leaders’ talks with U.S. envoy Mitchell during 13-18 Sept trip to region. Israeli govt announced plans to continue construction in E Jerusalem, W Bank including 455 new units 7 Sept despite U.S., Palestinian calls for settlement freeze; Netanyahu 14 Sept said construction to be “scaled down” but not frozen. 15 Sept Goldstone report to UN Human Rights Council on Dec-Jan Gaza offensive accused Israeli army of violations of international law including intentional targeting of civilians, called for full investigation; report also called for investigation of possible war crimes by Hamas. Fatah central committee 14 Sept announced acceptance of Egyptian reconciliation proposal, including delaying Palestinian elections planned for Jan; Hamas leader Meshal 28 Sept said Hamas ready to sign final draft with minor adjustments in Oct. Hamas, Israel 30 Sept agreed release of 20 Palestinian women detainees in exchange for video tape showing captured Israeli soldier Shalit is alive. 2 gunmen killed 19 Sept by Israeli shell in N Gaza following rocket fire into Israel; Israeli airstrike 25 Sept killed 3 militants east of Gaza city. Palestinian rioters 27 Sept clashed with security forces at Jerusalem’s Temple Mount/Haram al-Sharif.

Fatah movement 4-11 Aug held first congress since 1989; Mahmoud Abbas endorsed as leader, several prominent leaders from younger generation elected to central committee including Barghouthi, Dahlan. Some 2,000 delegates travelled to Bethlehem for congress; around 300 blocked by Hamas from leaving Gaza. Heavy clashes in Rafah, southern Gaza, between Hamas forces and members of hardline Islamist group Jund Ansar Allah 14-15 Aug after group declared “Islamic emirate”; at least 22 killed including group leader, 6 Hamas police, civilians. Egypt opened Rafah border crossing to Gazans 3-8 Aug. Israeli aircraft bombed Rafah tunnels 10, 30 Aug following mortar fire into Israel at northern Gaza crossing 9, 29 Aug. Israeli soldiers 31 Aug shot dead Palestinian youth, one of group reportedly throwing firebombs at guard post near Beit El settlement. Israeli authorities 2 Aug evicted over 50 Palestinians from East Jerusalem houses, drawing U.S., EU, UN criticism. Israeli govt 18 Aug said would not issue new West Bank settlement housing construction tenders until 2010. Palestinian Authority PM Fayyad 25 Aug revealed plan for unilateral creation of “de facto state” infrastructure within 2 years. Attorney-General 30 Aug filed indictment against former PM Olmert on 3 counts of corruption.

U.S.- Israeli tension over settlement-building continued as Israel approved new construction in East Jerusalem, refused to freeze settlement in West Bank. U.S. Mideast envoy Mitchell, Defense Sec Gates, other senior U.S. officials visited Israel for talks 26-29 July aimed at restarting stalled Israeli-Palestinian negotiations. Seventh round of Egypt-hosted Fatah-Hamas reconciliation talks, scheduled for 25 July, postponed 19 July to late Aug. Fatah chairman Kaddoumi 12 July accused PA president Abbas of role in 2004 death of Arafat. PA forces injured 2 in arrest of Hamas member near Ramallah 19 July. Settlers burnt olive trees, attacked Palestinian cars near Nablus after Israeli army removed outpost 20 July. Palestinian killed by Israeli troops after approaching Gaza border fence 19 July. Israel 29 July authorised first shipment of building materials into Gaza since Jan military offensive.