But a future Palestine must be 'demilitarized,' and the Jewish settlements won't be halted, Israel's leader says.
Forced to rebuild using mud and animal-drawn carts, Gazans are increasingly frustrated with Hamas's hard-line policies.
Israeli restrictions and dependence on foreign aid have stifled the all-important business sector.
Prime Minister Benjamin Netanyahu's administration is pushing back against increased US pressure to halt the growth of Jewish communities in the West Bank.
Official agreements are 'very clear' about stopping the growth of West Bank Jewish outposts – and Obama is not bound to unwritten pacts from the past, she says.
Many Israelis see the president's decision to bypass Jerusalem as part of a broader shift in US priorities in the region.
Though pleased with Obama's meeting with Palestinian President Abbas Thursday, they are waiting to see if the US president will break from decades of failed US policy on the Israeli-Palestinian conflict.
Not only are Fatah and Hamas deadlocked in a power struggle. Abbas’s own Fatah bloc has rejected his new government.