Maybe if we had a strong personality PM but not Olmert. And even then, not with "Arab states" when Hamas is waiting in the wings with Iran behind it, but with a strong popular Palestinian (not Hamas), which doesn't exist. Arafat wasn't able and Abbas has much less following. Sorry, the conditions are bad on both sides. Except only that sometimes miracles happen. Like the fall of Soviet Union.
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U.S.: Russia violated Turkish airspace despite warnings, but dialogue needed (Reuters)