Both sides, together with the US, appear to be regrouping after the Obama administration gave up on securing another settlement freeze.
Palestinian leader Mahmoud Abbas and Israeli Prime Minister Benjamin Netanyahu agreed today to meet again in two weeks. But Mr. Abbas has little support at home for the talks, even among allies.
Palestinian leaders have been warning that renewed peace talks with Israel, scheduled for next week, could be derailed after an Israeli settlement freeze expires. But behind the threats is a more nuanced and compromising position.
The declaration of two biblical tombs in the West Bank as Israel heritage sites last week sparked clashes. Though Monday was quiet, some fear a new Palestinian intifada in response.
Israel has agreed to release 20 female Palestinian prisoners in exchange for a video of Cpl. Gilad Shalit, who is being held in Gaza.
US Middle East envoy George Mitchell met with Israeli President Shimon Peres on Sunday and sounded optimistic that a deal on settlements could boost peace talks before the end of the month.
Ms. Rice concludes a one-day trip to the region Monday. Her 22 visits have netted little progress.
A permanent settlement in Maskiyot could hinder a faltering peace process as Palestinian and Israeli leaders meet with US secretary of State.