US State Department says gaps narrowing between Israel and Palestinians, but adds reports of agreement are premature; Israel to deduct money owed by PA from funds it transfers each month to Palestinians.

No injuries reported after IDF returns fire inside territory; earlier, around 140 Palestinians gather near border.

Ahead of meeting between Israeli, Palestinian negotiators, Fatah official accuses Israel of not pursing talks in good faith; Palestinians say planning to push international recognition campaign if talks fails.

Prime Minister's Office doesn't specifically confirm or deny report that Israel is financing trips for migrants to move to African nations.

Finance minister says Abbas is working against himself by making new set of demands, but Yesh Atid still supports diplomatic solution.

Palestinian leadership to take measures to change ''conduct in the field,'' official says, without elaborating.

Israel said it will not release a fourth group of Palestinian prisoners convicted for terror acts against Israelis because of the Palestinian Authority's decision to apply for admission to 15 international treaties and conventions.

New conditions include complete halt of settlement construction, PA sovereignty over Area C, and no IDF operations in PA-controlled territories.

Livni says Israel could not release prisoners under current conditions; calls for Palestinians to retract unilateral move, says that negotiations are 'to be reviewed.'

The Speaker of the Knesset, the Israeli parliament, said Israel and the US were prepared to pay the price to avoid a collapse of peace talks but the Palestinian Authority went back on agreements.