In Egypt earlier today.(Thaer Ganaim /PPO via Getty Images)

• In Egypt for the second round of direct Israeli-Palestinian talks, Secretary of State Clinton said she thought a deal could be reached to extend the West Bank settlement freeze in some fashion and keep the talks going. [NYT]

• But if Prime Minister Netanyahu makes too grand a gesture, he risks his fragile and right-wing coalition. [LAT]

• The chief U.N. nuclear inspector strongly condemned Iran’s treatment of on-the-ground investigators, setting up further conflict. [WSJ]

• Aluf Benn convincingly paints the talks at their current point as a poker game. A pretty high-stakes one, certainly. [Haaretz]

• Nearly all Arab states have failed to fulfill their donor requirements to the Palestinian Authority. [JPost]

• Roger Cohen basically echoes the point (not the headline) of the Time cover story: Peace would be great, but in the meantime, live your ife. [NYT]