http://blogs.law.harvard.edu/mesh/2009/07/obamas-opening-gambit/...Obama’s advisers argued that the Palestinian issue was the sine qua non for redressing the balance. Strike a powerful note on the settlement issue, they told the President, and the Arabs will gravitate toward you in response.
... Netanyahu was certainly shaken by this power play, but hardly coerced. In a step that the White House did not foresee, he quickly ran to capture the moral high ground in Israeli politics.
Shortly after Obama’s address from Cairo, Netanyahu delivered a speech of his own. In it, he tacked to the political center, presenting himself to the Israeli public as the representative of a mainstream consensus on national security. Approximately two-thirds of all Israelis support the position that their prime minister staked out. On the specific issue of settlements, Netanyahu reaffirmed the basic lines of the Bush-Sharon agreement: natural growth, yes; settlement expansion, no. “We have no intention to build new settlements or set aside land for new settlements,” he said. “But there is a need to have people live normal lives and let mothers and fathers raise their children like everyone in the world.” The warm reaction to the speech in Israel gave Netanyahu renewed political capital. He now turned to his critics in Washington with a warning of his own: “Do you really want to fight with three quarters of the Israeli public over the building of kindergartens?”
Obama is now on the horns of a dilemma. If he backs down on natural growth, he lays himself open to Arab claims that he is a hypocrite. On the other hand, if he sticks to his guns, he will become Israel’s senior city planner, rejecting building permits for a school one day, and a new home addition the next. The president can certainly win the fight over building permits, but he must already be asking himself whether it is really worth the prize. Victory will eat up at least a year of precious time, and it will not have a strategic impact.
If Obama found Netanyahu difficult to coerce, he failed to charm the Israeli Left. Israeli pundits have noted the conspicuous absence of a pro-Obama coalition on the Israeli political scene—this, despite the fact that the Israeli Left detests the settlements as much as or more than Obama himself. Many Israelis simply do not understand how the country’s security dilemmas fit into Obama’s larger scheme. With respect to the issue of gravest concern, Iran’s nuclear ambitions, Obama’s strategy remains worryingly opaque. And with respect to the Palestinian question, many Israelis are skeptical about the power of any American president to overcome the Hamas-Fatah split, and to create conditions on the Palestinian side that will achieve a two-state solution capable of guaranteeing Israeli security. In a context fraught with uncertainty, Obama is inviting the Israeli Left to join with him in a fight against Netanyahu in order to achieve… well, what precisely?
In addition to the vagueness of his goals, Obama’s body language has dealt the Israeli Left a weak hand. The Cairo speech cast Israel as a bit player in a U.S.-Muslim drama. The President, stressing his Muslim ancestry, did not take the time to fly to Jerusalem, where he might have reasoned with the Israeli public about the value to it of abandoning the Bush-Sharon agreement. Instead, his advisers denied flatly (and falsely) that such an agreement had ever existed. As a consequence of this disingenuousness, many Israelis fear that the administration aims to buy goodwill from the Muslim world by distancing itself from Israel, and they wonder whether settlements are not simply the first of many concessions that will be demanded. With such doubts swirling in the air, it is difficult for the Israeli Left to trumpet the Obama agenda.
This is quite a long piece but again I would urge you to read the whole thing.