With Israeli-Palestinian talks set to begin, a poll has shown that a majority of Israelis would support a final-status agreement with the Palestinian Authority.
Israel moved ahead with plans to build 3,000 settler homes in one of the most sensitive areas of the West Bank, as the European Union summoned Israel's envoy to add its voice to a storm of international protest.
Israeli Prime Minister Benjamin Netanyahu on Wednesday rejected Western and Arab complaints that the planned construction of 1,100 new homes in Gilo on annexed land close to Jerusalem would complicate Middle East peace efforts.
Photos from the funeral of the Fogel family, who were victims of last weekend's murder in the West Bank settlement of Itamar.
In the four weeks since direct Israeli-Palestinian peace talks resumed, settlement construction has been identified widely as the most immediate obstacle to the survival of negotiations.
Palestinian Authority President Mahmoud Abbas said he will not make a hasty decision to pull out of renewed peace talks in response to new construction in West Bank settlements.
With just more than a month to go before the Israeli-Palestinian peace conference is scheduled to take place, Jerusalem is shaping up to become the key issue.