Israel is politically unable to deal with two peace processes at the same time, especially with Likud in power. Obama's mistake is that he did not start by pushing Israel into peace with Syria, that is, pushing Israel to give up the Golan. Peace with Syria can be settled within a year since all the issues have been discussed and the solutions are known. Even Netanyahu, during his first PM term, agreed to give back the Golan in return for peace. And the older Assad agreed to peace on this basis. (Ehud Barak became fearful, but Clinton did not pressure him.) Likud, and the other Greater Israel idealists, know that the Golan is not part of historical Eretz Israel (where the 12 tribes dwelled), so pressure can persuade them. Peace between Israel and Syria and normalization of relations with the US will cause a break with Iran and will choke off weapons to Hizballah (and even Hamas). It will also weaken the Palestinians, making them more amenable to compromise. After that relatively easy step, the US should have turned to peace with the Palestinians. But Obama was inexperienced, and has a weak Foreign Policy team. Obama also believes in his power of persuasion and may not understand illogical or ideological people.
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