The headline throughout the day has been Israel's Prime Minister Bibi Netanyahu's standing up to President Obama and saying “No” to the freeze on Jewish building in Arab parts of Jerusalem.
It has come out, that secret negotiations have been held between Obama and Netanyahu on his Administration's demands.
Mr. Netanyahu apparently sent a message to President Obama last weekend, according to which Israel refuses the request to completely freeze construction in the Arab parts of Jerusalem. Netanyahu, as an attempt to show conciliation, expressed a willingness to release Palestinian prisoners and ease restrictions on entry of goods into Gaza.
Indeed Israel did release this week a former Hamas minister from prison. After almost 3.5 years after being put in 'administrative detention', Wasbi Kahabe, who is the Hamas government's Prisoners Affairs Minister was let go saying that Palestinian prisoners are waiting for Palestinian unity.
We also saw Israel ease it's grip on Gaza allowing a delivery in masse of clothing into the Strip.
Another surprise was a statement by the religious Shas party leader, Rabbi Ovadiah to the Israeli President Shimon Perez that it is possible to freeze construction in Jerusalem.
As for America, it's diplomats have reportedly said that it's not the end of the road for the negotiations.
In fact there are probably a few forks in the road because Mr. Netanyahu also responded to President Obama on another subject – that of the Nuclear Non-Proliferation Treaty saying Israel will not sign up on it.
So it looks like it's gearing up to be a long hot summer in many different ways here in the Holy Land.
I'll have my live update on Monday with more developing details so join me on the Harvest Show!
Middle East Correspondent