A late-night meeting between Prime Minister Binyamin Netanyahu and Foreign Minister Avigdor Lieberman has ended what is being seen as the coalition government's most serious crisis to date. However, the tension between the two is far from over.
Following a weekend of angry statements from Mr Lieberman and his party colleagues regarding the failure of the prime minister to honour his coalition commitments, the pair met on Monday for two hours and emerged promising to continue their partnership and improve co-operation.
Rumours that Egyptian President Hosni Mubarak is dying have caused concern in Israel over the future of the Israeli-Egyptian relationship.
Over the past three decades, Mr Mubarak has gained admirers in Israel for sticking to the Egyptian-Israeli peace treaty through wars and intifadas. But the "cold peace" does not depend on him personally and is still likely to persist in a post-Mubarak era, analysts say.
A meeting between Israeli and Turkish ministers last week, intended to be secret, seems to have done nothing to improve the countries' rocky relations, instead causing at least two crises within Binyamin Netanyahu's coalition.
Trade and Industry Minister Binyamin Ben-Eliezer has close ties with politicians in many Muslim countries and has undertaken delicate diplomatic missions in the past. Following the breakdown of Israel's relationship with the Erdogan administration after the Gaza flotilla incident last month, Mr Ben-Eliezer tried to use back channels to mend fences.
The master of oratory was a bit off-form on Tuesday. President Barack Obama said all the right words at the end of his Oval Office meeting with Prime Minister Binyamin Netanyahu, but his heart obviously was not in it.
He stuttered slightly, repeatedly failed to make eye contact with the camera and almost fluffed his lines. Mr Netanyahu seemed much more at ease, but then he has a lot more practice than the president at glossing over compromise in public.
Israeli Prime Minister Benyamin Netanyahu has said he is prepared to release 1,000 Palestinian prisoners in exchange for Gilad Shalit.
In a live address on Israeli television, Mr Netanyahu said he was ready "to pay the price" of releasing the prisoners, but would not allow them to return to the West Bank and would not set free "arch-terrorists".
He has come under increasing pressure from Shalit's family. More than 10,000 supporters of the family marched in Netanya on Friday morning as part of a 12-day protest march to Jerusalem.
Israeli cabinet ministers have met to discuss relaxing the blockade of Gaza.
Members of the security cabinet are looking into allowing around 100 more goods into Gaza.
The meeting has been adjourned and will reconvene later with an announcement expected soon. It comes after the decision earlier in June to ease the blockade by allowing in provisions including Coca Cola, shaving cream and spices.