Post-Iraq America is watching the economic rise of China and the relative decline in American diplomatic power. It is now seeking to pivot to the Pacific and has no good options re ME now that its strategy of bribing various dictators is in the process of falling apart. There have been enough comments coming from the US re the price it pays for its perceived bling support of Israel and the US has either been unable to pressure the EU against partial financial sanctions in the O/T or has quietly encouraged the EU in this matter. Who knows. Whether this is enough to overcome the domestic power of AIPAC on Congress only time will tell. If the talks fail, and odds are they will, there is going to be the day after. There is every possibility Israel will then feel real economic pain and international isolation plus the threat of ICC action, and there will be very little that the USA can do to mitigate this.
Saudis warns U.S. that 9/11 responsibility law would erode investor confidence in America (Reuters)