Essentially, the Palestinians are telling everyone to give them what they want or else. The "or else" of course is terrorism. Knowing that Israel and the Palestinians are deadlocked the US is begging the Arabs to make the Palestinians show some flexibility (as if the Arab goals are any different) Obama and the EU don't mind making Israel take great risks to placate the Arabs but they don't want to sell out Israel completely. Obama would like to wave a piece of paper in front of the media and cry out "we have a peace deal". With that he thinks the Muslims will leave the West alone. If not, well,too bad.
U.S. says working on initiative to de-escalate Syria fighting, with focus on Aleppo (Reuters)