Whether the Israelis pursue a peace agreement is a matter of their own self interest. The US should neither subsidize it, nor insist upon it. If Israel injures itself for sort term internal political reasons, so be it. It won't be the only country in the region to do so. The US should not prop up Israel. Neither should the US prop up the Palestinian Authority, whose institutions are the responsibility of Israel, as the occupying power.
U.S. says working on initiative to de-escalate Syria fighting, with focus on Aleppo (Reuters)