Once the heart of the intifada, Jenin is today lauded as a model of cooperation between Israeli and Palestinian security forces. Israeli Jews may soon be allowed to shop here again, bringing $3 million per weekend.
Palestinian peace negotiator Saeb Erekat denied reports that Palestinian President Mahmoud Abbas is ailing. But speculation over Abbas' health is a reminder that a change in leadership could throw peace efforts into turmoil.
Many Israelis have rallied around a Gilad Shalit release deal, but critics say an exchange of the captured soldier for Palestinian prisoners could cause new wave of violence.
Gaza militants vowed counterattacks for Israeli air strikes, one day after Hamas-brokered deal to stop rocket attacks.
Palestinian polls show Abbas gaining significant support in recent months over Hamas, which harshly criticized his willingness to meet the Israeli leader without a settlement freeze in place.
US solutions to the Israeli-Palestinian conflict reportedly include UN administration of Jerusalem's holy sites and no right of return for Palestinian refugees.