The unusually violent observance of the 1948 anniversary came at a critical time for U.S. Mideast policy.
President Barack Obama's envoy to the region, George Mitchell, resigned Friday after more than two years of fruitless efforts. The U.S. president is expected to deliver a Mideast policy speech this week and to meet with Israeli Prime Minister Benjamin Netanyahu at the White House.
In the absence of peace talks, the Palestinians plan in September to seek recognition of statehood at the U.N., with or without a deal with Israel.
In another development, Israel said it transferred to the Palestinians some $100 million in taxes it had withheld to protest a unity deal that opened the door for the Islamic militants of Hamas to become partners in the Palestinian government.
Israel collects tax funds and customs fees from Palestinians who work in Israel on the Palestinians' behalf. It held up the transfer this month, saying it feared money would reach militants in the Hamas-ruled Gaza Strip.
Israel had come under international pressure to release the funds.
The Palestinian unity deal is meant to end a four-year division that created rival governments in the West Bank and Gaza Strip — areas they hope to turn into an independent state.
The rival Fatah and Hamas factions met in Cairo Monday to discuss possible nominations for positions in the new government they hope to form. The caretaker government is to remain in office until new elections next year.
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