Even ardent Netanyahu supporters in Washington won't accept new settlement building plan.
Despite Barak claim that settlement freeze impossible, Modi'in Ilit banned from building hundreds of new homes.
Obama must directly address the Israeli people and present to them the cost of refusing peace.
Hamas official says last Israeli offer was made under Olmert; Barak blasts 'damaging' reports on Shalit.
U.S., EU making efforts to include Hamas in peace process, long-term truce with Israel.
World hopes Shalit's transfer to Egypt would prompt prisoner swap, usher progress on other fronts.
West lobbies Hamas on long-term cease-fire with Israel, support for Arab peace initiative.
Sources: New U.S. initiative underway to free IDF soldier abducted in 2006 by Palestinian militants.
Source: U.S. believes including Syria in process is key to bring about internal Palestinian reconciliation.