Five months after Barack Obama went to Cairo and persuaded most of the Arab world, in a ringing declaration of even-handedness, that he would face down Israel in his quest for a Palestinian state, American policy seems to have run into the sand. The American president’s mediating hand is weaker, his charisma damagingly faded. From the Palestinian and Arab point of view, his administration-after grandly setting out to force the Jewish state to stop the building of Jewish settlements on Palestinian land as an early token of good faith, intended to bring Israelis and Palestinians back to negotiation-has meekly capitulated to Israel.

The upshot is that hopes for an early resumption of talks between the main protagonists seem to have been dashed. Indeed, no one seems to know how they can be restarted. The mood among moderates on both sides is as glum as ever.

Mr Obama’s secretary of state, Hillary Clinton, made matters worse by actually praising Israel’s prime minister, Benjamin Netanyahu, for promising merely to “restrain” Israel’s building rather than stop it altogether, as he was first asked to do. Previously Mrs Clinton had insisted that stop meant stop. There should be no “organic growth” of existing settlements and no exceptions for projects under way. Nor did she specifically exempt East Jerusalem, which Palestinians view as their future capital but which many Israelis see as theirs alone. And she had earlier castigated Israel for demolishing Palestinian houses in the city’s eastern part. Now, in Israel on October 31st, she changed her tune, seeming to acquiesce in Mr Netanyahu’s refusal to meet those earlier American demands and congratulating the prime minister on his “unprecedented” offer to build at a slower rate than before.

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