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One Palestinian Authority police officer was killed and another injured after they fired on an undercover Israeli Border Police unit mistaken for members of Hamas. Defense minister Ehud Barak visited soldiers from the IDF's Gaza Division and "discussed the possibility of launching an extensive counter-terror campaign in the region." An Israeli airstrike killed two Hamas fighters in Gaza on Wednesday. Israel plans to build 300 new homes in East Jerusalem; Palestinian officials assert "that the plan could damage the peace process" in Annapolis.