This week, all eyes were on Jerusalem as Israeli military forces cracked down heavily on Palestinian protesters, especially on March 16. Several dozen Palestinians were wounded and arrested when riots broke out following news of the rededication of a Jewish synagogue, located near the Aqsa Mosque. Palestinian Jerusalemites took to the streets in the Old City, Wadi Joz, Shufat and Ras Al Amoud, clashing with Israeli soldiers and border guards. In the Old City, 3,000 police and soldiers were deployed throughout the city and the main gates to Al Aqsa Mosque were closed to all those under 50.

The Israeli measures did not stop the clashes though. Violence flared up in Jerusalem and in West Bank areas with an Israeli presence such as at the Qalandiya and Atara checkpoints. Israel shot metal-coated rubber bullets, sound grenades and tear gas canisters at protesters, who responded with stones and empty bottles. Dozens of Palestinians were arrested – many of them innocent bystanders – when Israel raided Old City neighborhoods and broke into homes. Since March 16, 20 Palestinians from Jerusalem – many of them who live in the Old City – have been arrested, released and subsequently banned from entering the Old City walls for 15 days. One Israeli policeman was also injured by gunfire in the Ras al-Amud neighborhood and 10 students from Birzeit University were wounded in clashes with Israeli soldiers at the Atara checkpoint.

Since then, sporadic clashes have erupted in and around Jerusalem. On March 19, clashes were renewed in the holy city and in several areas of the West Bank, including the Ramallah-area villages of Bilin and Nilin. These two villages have made international headlines after weekly non-violent protests there against Israel's separation wall. Then, on March 15, in order to quell the protests and the international attention they are getting, the Israeli army declared the two villages as closed military zones every Friday (when the protests take place) for a period of six months.

Clashes also broke out in the Shufat refugee camp in east Jerusalem where Israeli undercover agents dressed as "Arabs" arrested 15 men. Perhaps one of the most dangerous developments since the start of these riots came on March 20 when extremist Jews took to the streets in the early morning hours, setting fire to Palestinian cars in several neighborhoods in east Jerusalem. Last week, extremist Jewish groups distributed flyers threatening to attack Palestinian residents of Jerusalem if they continued to protest the rededication of the Hurva synagogue in the Old City. According to press reports, these groups have also organized a "rally" in the Silwan neighborhood on March 21.

In the West Bank, Jewish settlers from the Eli settlement area uprooted 25 olive trees from the Qaryut village near Nablus.

In Gaza, on March 20, 10 Palestinians were wounded in Israeli shelling and air strikes, which began a day earlier. On March 19, 14 Palestinians were injured in six airstrikes following the death of a Thai worker near Askalan from a Palestinian rocket fired from Gaza. The airstrikes hit smuggling tunnels and the defunct Palestine Airport. The rocket firing was claimed by two Palestinian groups, Fateh's Aqsa Martyrs Brigades and an unknown group calling itself Jund Ansar Al Sunna.

The recent turbulence in the Palestinian territories is not coincidental and has much to do with Israel's ever encroaching policies in Jerusalem. The announcement of the construction of an additional 1,600 housing units in the illegal Jewish settlement of Ramat Shlomo ignited not only fury among Palestinians but a diplomatic row between Israel and the United States. What seemed like it might develop into a full-blown problem has now been sized down to a "spat between friends," according to US President Barack Obama. The President is to meet with Israeli Prime Minister Benjamin Netanyahu in Washington on March 23 where the two will also be addressing the annual AIPAC gathering.

On March 19, US Secretary of State Hillary Clinton said she felt the recent tension between Israel and the US over the settlement expansion was "bringing results." In an interview with BBC, Clinton said, "I think we're going to see the resumption of the negotiation track and that means that it is paying off because that's our goal." Clinton explained that Washington had made it clear it expected certain gestures from Israel including a rollback in housing planning and a gesture of good faith to the Palestinians. Netanyahu has said he was willing to make some "gestures" which will most likely include the release of prisoners and the removal of some checkpoints. The two sides will supposedly try to smooth things over during the Israeli premier's visit to the White House next week.

Other US officials were also critical of Israel. On March 17, US General David Petraeus said the Arab-Israeli conflict was hurting American interests in the Middle East, fomenting anti-American sentiment and limiting America’s strategic partnerships with Arab governments. Petraeus said the conflict was one of the “root causes of instability” and “obstacles to security” in the region.

"The enduring hostilities between Israel and some of its neighbors present distinct challenges to our ability to advance our interests,” he said. “Arab anger over the Palestinian question limits the strength and depth of US partnerships with governments and peoples in the [Middle East] and weakens the legitimacy of moderate regimes in the Arab world.”

The US was not the only party that expressed displeasure with Israel's continued settlement expansion. On March 20, visiting UN chief Ban Ki-Moon criticized Israel's settlement building by saying that it undermines peace. He also said Israel should improve the overall situation for the Palestinians in order to pave the way for the creation of a Palestinian state during a press conference in Ramallah.

EU foreign policy chief Catherine Ashton was also critical of Israel for its settlement policies. During a four day trip to the Middle East in which she visited Arab counties including Palestine, Ashton criticized Israel's east Jerusalem building plans and also said the EU was ready to become more involved in the peace process.

"The European Union is ready to step up its involvement in the peace process," Ashton said in an address to the Arab League in Cairo on March 15. On March 18, Ashton met with Palestinian officials, including PLO Executive Committee member Hanan Ashrawi.

However, the main issue, which is settlement expansion, is far from solved. Despite the tensions the last settlement construction announcement caused with Israel's closest ally, Netanyahu held his ground, saying on March 15 that Israel would continue to build in Jerusalem just like it has been doing for 42 years.

"The building in Jerusalem - and in all other places - will continue in the same way as has been customary over the last 42 years," Netanyahu said at a Likud party meeting.

In line with this philosophy, on March 17, the Israeli daily Yediot Ahranot said the Israeli Housing Ministry planned to announce tenders to build 1,300 new settlement units in Pisgat Zeev, Navi Ya’cov and Jabal Abu Ghneim, all in east Jerusalem, was waiting for the green light from Netanyahu.

The pressure is also on the two parties to finally begin the long-awaited proximity talks, which were put on hold yet again after Israel's settlement announcement last week. Palestinians have said they were wary of going back to talks until Israel freezes settlement construction, including in east Jerusalem despite calls from the Quartet committee to re-launch the talks.

Finally, the Palestinian leadership in Ramallah decided on March 17 to name a street in the city after Rachel Corrie, the young American peace activist who was run over and killed by an Israeli bulldozer as it went to demolish a home in Rafah in 2003. Corrie's parents are in the country to sue the Israeli the Israeli government for their daughter's death and were present at the ribbon-cutting ceremony.