Netanyahu expressed qualified support for the principle of an independent Palestinian state, with conditions that it be demilitarized and recognize Israel as a Jewish state.

A brief round of negotiations broke down when a 10-month partial moratorium on building settlements in the West Bank expired and Israel refused to extend it.

Netanyahu made a charismatic speech to the U.S. Congress, aiming to assure continued U.S. support in the War on Terror.

Netanyahu's administration negotiated with Hamas for the release of Israeli soldier Gilad Shalit, in exchange for 1,000 Palestinian prisoners.