Israeli premier said the unity cabinet would "strengthen terror."

Move could send Israeli-Palestinian relations into tailspin and could scupper prospect of resuming talks.

Soldier was captured on video firing on Palestinian protesters.

Former premier Ehud Olmert was convicted for accepting bribes in a real estate deal.

U.S. National Security Advisor Susan Rice will head the delegation to Israel to discuss security issues.

P.M. seeks law to retaliate against Palestine's unwillingness to recognize Israel's Jewish status.

Direct talks had resumed in July after a three-year hiatus but quickly became strained.

The Israeli government decided to suspend American-sponsored peace talks with the Palestinians.

The PLO and Hamas announced an agreement on Wednesday to heal a seven-year schism and form a unity government within five weeks that would prepare for Palestinian elections six months later.

Foreign policy chief slammed Israeli moves as 'not conducive' to talks.