Although Israeli and Palestinian leaders are pessimistic about the chances of a breakthrough in the U.S.-mediated proximity talks that begin this week, the Americans hope the process itself will generate a new peacemaking dynamic.

Despite immense international pressure to halt Jewish construction in east Jerusalem and in all areas over the Green Line, Israel Land Fund founder Aryeh King on Sunday presented a plan that would see nearly 200,000 new housing units created there.

Indirect peace talks between Israel and the Palestinians will begin this week.

Despite a 2002 road map commitment and years of pledges by successive prime ministers including Binyamin Netanyahu, Israel has no intention in the foreseeable future of dismantling any of 23 unauthorized West Bank outposts built after March 2001.

The IDF is investigating an incident during which Palestinian security officers entered territory under Israeli control and held a firefight with a Hamas fugitive they were pursuing.

Hamas official Mahmoud Zahar on Monday night criticized an animated video released by the group’s military wing which depicted Gilad Schalit returning to Israel in a coffin, saying Hamas “would never kill a captured Israeli soldier.”

Samaria Brigade Commander Maj.-Gen. Itzik Bar will be reprimanded over events which led to four Palestinians losing their lives at the hands of soldiers several weeks ago, IDF Chief of the General Staff Lt.-Gen. Gabi Ashkenazi decided in a ruling announced Monday overnight.

Palestinian Authority President Mahmoud Abbas signed a law that bans products made in West Bank settlements.

Two Jerusalem officials say Israel has frozen plans for new construction in the city's disputed eastern sector despite Prime Minister Benjamin Netanyahu's declarations to the contrary.

An IDF force on Sunday uncovered three mines hidden near the border fence in central Gaza. The mines were meant to explode during army patrols.