A final settlement with the Palestinian Authority (PA) may save the career of Prime Minister Ehud Olmert, Reuters News Agency reported Wednesday.  "Deeply unpopular since last year's Lebanon war, Olmert could use success in peacemaking to save his career," Reuters stated. "But many doubt he can win Israelis' support for critical concessions. A public inquiry into the Lebanon war, due to report this autumn, could still recommend that Olmert resign."

It also noted that Palestinian Authority (PA) Chairman Mahmoud Abbas is resisting anything less than "final status" talks, to include the status of Jerusalem and the fate of the PA demand for the right of immigration of more than five million Arabs living in foreign countries.

Reuters stated that PA Prime Minister Salam Fayyad has agreed to halt "armed resistance" but did not add his about-face several days later when he said resistance still is legitimate.