Tel Aviv — The worst violence between Israel and Palestine in years has complicated efforts to unseat Israeli Prime Minister Benjamin Netanyahu and end a prolonged period of political paralysis.

Mansour Abbas, head of the Islamist United Arab List faction, froze negotiations to join a potential coalition headed by the Jewish nationalist Naftali Bennett and secular centrist Yair Lapid, citing the ongoing flare-up that’s killed more than two dozen Palestinians and two Israelis, and wounded hundreds more...

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