Israel's crises with key regional partners Egypt and Turkey could pressure the Jewish state to make a renewed push for peace with the Palestinians.
Israel yesterday announced new homes in East Jerusalem to ease a housing shortage. But critics argue that the cost of building in contested territory is partially to blame for Israel's economic woes.
Three years after Israel imposed the Gaza blockade to weaken Hamas, some Israeli analysts say it has failed. But Israel sees few other feasible options for containment.
In its response to the Goldstone report, Israel revealed that two senior military officers have been reprimanded for using white phosphorus in Gaza. But that doesn't settle the larger debate over launching an independent commission.
Though the approval of new building in West Bank settlements angered many, it appears to have preserved the prime minister's coalition.
Israel agreed Sunday to dismantle 50 West Bank roadblocks after talks with Secretary of State Rice.