Jerusalem was divided prior to 1967. There was no "occupation". Nor was there peace. If anything, matters were even worse. This war isn't about settlements or Jerusalem. It's about Arab xenophobia, about them being unable to accept any outsider in their backyard.
Palestinian reportedly shot dead by Israeli soldiers after approaching Gaza border fence (Haaretz)
from the article: Livni to Sweden: Ditch EU plan on dividing Jerusalem