The BBC reports that Palestinian leaders have rejected a Israeli offer to extend a moratorium on building on the West Bank -- in exchange for Palestinians' formal recognition of Israeli as a Jewish state.

U.S. Secretary of State Hillary Clinton and U.S. special envoy George Mitchell are wrapping up a visit to the Middle East for a second round of peace talks this week.

President Barack Obama reinforced U.S. support for achieving peace in the Middle East, as Israeli and Palestinian leaders met directly at the White House for the first time in nearly two years this week.

President Barack Obama and Israeli Prime Minister Benjamin Netanyahu made a point to demonstrate a warm relationship and pledged concrete steps to revive Mideast peace efforts with Palestinians when they met Tuesday in Washington.

Israel agreed to allow some building materials and food into the Gaza Strip, hoping to quell growing worldwide outrage following the flotilla raid.

David Sanger, of The NYT, talks about the pressure President Obama is putting on BP, and the growing tension between Britain and the U.S. over the spill.

Following talks with Palestinian leader Mahmoud Abbas in the White House, President Barack Obama called the increasingly tense environment in the Mideast "unsustainable".

Tensions continue to mount off the coast of Gaza, where Israeli naval forces shot and killed four alleged members of a militant group. Meanwhile, the international community is pushing for an investigation of last week's naval raid.

An Irish aid ship set sail today for Gaza and expects to arrive on Saturday, despite Israeli opposition.

Israeli Prime Minister Benjamin Netanyahu says Israel has the right to inspect ships bound for Gaza.

Israel's attorney general says all of the nearly 700 activists on an aid flotilla bound for Gaza will be deported today.

Prime Minister Recep Tayyip Erdoğan criticized Israel for its flotilla raid on Monday.

Israeli Prime Minister Benjamin Netanyahu gave the soldiers in the flotilla raid his 'full backing.'