The Olive Branch and the UN

"The Iranian regime sees the nuclear project as an umbrella... that will protect it from severe US and Israeli reactions to its actions - an insurance policy that will make sure that the US won't do what it did to Saddam."--Senior Israeli military official explains Iranian refusal of West's offer, Yedioth.

• Abbas to Netanyahu: Respond favorably to Palestinian peace plan or we return to UN - Abbas gave the PM a month to respond to the Palestinian positions, which will be laid out in a letter to be delivered to Netanyahu next Wednesday. (Haaretz)
• Mofaz: 'Palestinians should get 100% of their territorial demands' - Kadima Chairman gets flak from Right and his own party for interview given to NYT. (Israel Hayom)
• Egypt sends 7 battalions into Sinai with Israeli approval, sources say (Israel Hayom)
• Hundreds of demonstrators rally to protest against Israel's skyrocketing cost of living. (Ynet)
• Syria demands written guarantees from rebels before pulling back troops (Agencies, Haaretz)
• Egypt's former spy chief Omar Suleiman joins presidential race (Agencies, Haaretz)
• 'Suleiman's election could trigger nationwide revolt' (Agencies, Ynet)
• Muslim Brotherhood official says movement will honor Israel peace accord (Israel Hayom)

Here is the full News from Israel.