Israel doesn't want peace because the constant state of conflict the leaders stir up means more economic and military aide coming in from the USA, more world sympathy, and most important of all...keep the very divided Israeli population united against a common enemy. Without the Palestinian conflict, Haredis/Ultra-Orthodox/Sephardim would be at war with the Seculars/Ashkenazis. Israel NEEDS and SEEKS conflict with its neighbors.
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Report: Russia's Lavrov says Syria's Assad is not an ally (Reuters)
from the article: Abbas give in to U.S. pressure for indirect Mideast talks