Around 3,000 Palestinians gathered in the West Bank on Sunday to protest against the U.S. veto that nixed a Security Council resolution on Israeli settlements.

The crowd massed in Ramallah's Manara Square, a central roundabout in the West Bank city, waving banners and shouting slogans against the American administration.

Israel's prime minister on Sunday accused Iran of trying to exploit the recent instability in Egypt by sending two warships through the Suez Canal into the Mediterranean, saying he views the move "with gravity."

The Iranian ships were expected to make a rare crossing through the canal on Sunday or Monday en route to Syria — an Iranian ally and Israel's enemy to the north. Egypt confirmed the ships would be allowed through the strategic passage.

The Israeli navy is to present a plan for the defense of offshore gas fields that hold the prospect of greatly reducing the Jewish state's energy dependency, the mass-selling Yediot Aharonot newspaper reported Sunday.

Citing a senior military official, the newspaper said that the plan, which will require government approval, will have an initial price-tag of $40-70 million and will be presented at the end of the month.

Israeli deputy Prime Minister Silvan Shalom threatened on Friday Hizbullah Secretary General Sayyed Hassan Nasrallah by saying: “We are not keen on battle, but if it is imposed on us, them we will return you Nasrallah to the underground hideout where you will stay for years.”

“The Galilee is prospering and we are spending money on it for it to prosper,” he stated.

Israeli missions in Turkey have stopped working while security measures are implemented in response to threats by Hizbullah, an Israeli diplomatic source said Friday.

"Officially, we are not closed, but practically we are not functioning... because of security problems," the source told Agence France Presse.

A Lebanese military court sentenced a man to death on charges of spying for Israel's Mossad and providing the agency with information on Hizbullah, a judicial official said Friday.

"A military court has sentenced Amin Ibrahim al-Baba to death ... for contacting Israeli intelligence and providing information that aided Israeli attacks on Lebanon," the official told Agence France Presse.

Iranian officials were in contact with their counterparts in Egypt to secure the passage of two warships through the Suez Canal, Tehran's English-language Press TV reported on Thursday.

The vessels intend to transit the canal, the channel's website quoted an unnamed Iranian navy official as saying.

President Michel Suleiman condemned on Thursday Israeli Defense Minister Ehud Barak’s recent threat against Lebanon, saying that it was a violation of international law and U.N. Security Council resolution 1701.

The president said that the threat was aimed at lifting the Israeli army and the new Israeli chief of staff’s morale “because he knows full well that entering Lebanon is no loner a walk in the park as demonstrated by the July 2006 war.”

Three Palestinians were shot dead by Israeli troops early on Thursday in an area near Gaza's northern border with Israel, officials on both sides said.

Adham Abu Selmiya, a spokesman for the Hamas-run emergency services, said the men died after being hit by a tank shell and machine gun fire in an area called Al-Waha which lies close to both the shore and the northern border with Israel.

Israeli Prime Minister Benjamin Netanyahu warned Hizbullah on Wednesday against any attack, after the group's leader Sayyed Hassan Nasrallah threatened to take over the Galilee in northern Israel.

"Nasrallah declared today that he will conquer the Galilee," said Netanyahu. "I have news for him. He won't."