List of news covering websites (mostly palestine based)
Electronic Intifada : http://electronicintifada.net/
Ma'an News (in English) : http://www.maannews.net/eng/Default.aspx
Bitter Lemons : http://www.bitterlemons.org/
The Palestine Chronicle : http://www.palestinechronicle.com/
Al Quds (in Arabic) : http://www.alquds.com/
Friends of Al-Aqsa (UK based NGO) : http://www.aqsa.org.uk/
Palestine Daily : http://wn.com/palestine_daily
List of news covering websites (israel based)
Haaretz (Israel based, coined by many as a 'leftist' source) : http://www.haaretz.com/
The Jerusalem Post : http://www.jpost.com/
Y Net News: http://www.ynet.co.il/english/home/0,7340,L-3082,00.html
Israel National News : http://www.israelnationalnews.com/
B'Tselem (Israeli information center for human rights in the occupied territories) : http://www.btselem.org/English/index.asp
Challenge Magazine (published by Arabs and Jews in Israel (from Jaffa) : http://www.challenge-mag.com/
IsraCast (focus on Israeli foreign affairs and defense issues) : http://www.isracast.com/