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.
Prime Minister Benjamin Netanyahu appears set to push through a temporary Israeli settlement freeze in exchange for $3 billion in US military aid.
With Israeli-Palestinian peace talks set to resume Sept. 2, Netanyahu may face rebellion in his Likud party over extending Israel's settlement freeze.
Israel's surprise announcement that it will cooperate with a United Nations investigation into the deadly May 31 Gaza flotilla raid signals the nation's assessment that it cannot keep alienating allies.
Four years after Gilad Shalit was abducted by Hamas on the border of the Gaza Strip, his family is marching to Jerusalem and vowing to camp outside Netanyahu's door until Israel brings Shalit home.
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.