I believe Netanyahu is testing the ground here. The demand of recognition of a Jewish State is a major card in this political scenario. Just like Ehud Barack was willing to cede practically all that was demanded and "did not" achieve peace, it is unlikely an agreement will be reached in the present talks. However, the "unbendable" Netanyahu will have impressed the world, Obama's demands will appear satisfied, Abbas will prove to be the non-entity everyone knows him to be, Hamas will accentuate its terrorist image and the Israeli-Palestinian position will remain unchanged. Israel has to hope the arab world will increase its business co-operation with it, as is already happening tacitly with some of the arab states, and that eventually Palestinian support by the arab states will wane. Over time Iran's influence, one way or the other, will disappear. When the arabs themselves stop supporting the Palestinians the West will follow suite. Meanwhile, unfortunately, the Israeli war machine will have to keep its equipment well greased!
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White House says U.S., Russia have been working to reassert ceasefire in Syria (Reuters)
from the article: PM, Abbas to meet in Egypt amid Palestinian threats to quit peace talks