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The Israeli army is to return West Bank land it requisitioned nearly 40 years ago to its Palestinian owners.

Israeli authorities said Thursday they had opened an investigation into a video showing gun-wielding Jewish extremists at a wedding celebrating the death of a Palestinian toddler in a firebombing.

US Secretary of State John Kerry told an Israeli gathering at the United Nations that a two-state solution in the Middle East was "not an impossible dream" but would require courage.

Israeli Prime Minister Benjamin Netanyahu voiced pessimism about the prospect of peace with the Palestinians, suggesting the current stalemate was likely to remain in place.

EU foreign policy chief Federica Mogherini urged Israel Premier Benjamin Netanyahu and Palestinian president Mahmud Abbas to meet Quartet representatives "within days" in the hope of kick-starting stalled peace talks.

UN Secretary-General Ban Ki-moon told the Security Council that he was "not optimistic" following his talks with Israeli and Palestinian leaders to urge them to defuse tensions.

US Secretary of State John Kerry was holding talks with Israeli Prime Minister Benjamin Netanyahu in Berlin.

US Secretary of State John Kerry said he will engage Israeli and Palestinian leaders on the "basics" of administering Jerusalem's holy sites to try to calm tempers in the city.

US State Secretary John Kerry called for an end to the wave of deadly Israeli-Palestinian violence but said "Israel has every right in the world to protect itself".

Prime Minister Benjamin Netanyahu vowed that Israel would not bow to "knife terror" as three new stabbings in Jerusalem spread more fear among Israelis and Palestinian unrest showed little sign of slowing.

Prime Minister Benjamin Netanyahu said Israel was "waging a fight to the death against Palestinian terror", and ordered tough new measures after the killing of two Israelis in Jerusalem.

In an industrial zone among the hills of Galilee in northern Israel, a ponytailed sociologist with an intolerance for gluten explained what he was up to: beer made with chickpeas and dates.

Clashes between Israeli security forces and Palestinians at a Jerusalem holy site could trigger violence elsewhere in the Middle East.

Palestinians and Israeli security forces clashed in Jerusalem's flashpoint Al-Aqsa mosque compound and the surrounding Old City for a third straight day.

Some 13,000 Palestinian structures in the West Bank are currently under Israeli demolition orders, leaving residents and homes "in a state of chronic uncertainty and threat".

Israeli Prime Minister Benjamin Netanyahu said Tuesday he was willing to engage in immediate and direct peace talks with Palestinian president Mahmud Abbas.

UN Secretary General Ban Ki-moon raised alarm over a $100 million shortfall in funding for the UN aid agency for Palestinian refugees and called for urgent donations.

Malala Yousafzai told world leaders they were failing Syria's children, as the Nobel Peace Prize winner spent her 18th birthday on the Syrian border.

Israeli Prime Minister Benjamin Netanyahu said Sunday he was committed to the establishment of a Palestinian state.

EU foreign policy chief Federica Mogherini called on Israel and the Palestinians to resume peace negotiations, saying the situation on the ground was "not sustainable."