Interesting article here just published on al-Jazeera. Saudi Arabia has rejected peace talks (after encouragement from the United States) with Israel based on Israel's failure to meet initiatives outlined in the Arab Peace Initiative (wikipedia): a full withdrawal of the occupied territories (the West Bank, and the Golan Heights) being the primary initiative.

Al-Faisal said that Israel must adhere to what is stipulated in the Arab Peace Initiative in order for it to have a constructive relationship with Saudi Arabia.

"What is required is a comprehensive approach that defines the final outcome at the outset and launches into negotiations over final status issues," he said.

Those final status issues include marking the borders of a future Palestinian state, control of the city of Jerusalem, the right of return of Palestinian refugees, security and water rights.

It is becoming more and more obvious that Arab states will not tolerate the continued building and expanding of Israeli settlements; yet Israel doesn't seem keen to back down either.

The big question about peace in the Middle East is in Israel's court; this perspective depends on one's perception of the Iranian threat. If Iran is indeed an enormous threat to the stability (as if!) of the region then it might be the case that no matter what Israel does. If she guarantees full right-of-return to 4.6 million Palestinian refugees in the world, completely withdraws from the occupied territories, declares a sovereign and viable Palestinian state on the 1967 borders--what will Iran do?

Iran is not part of the Arab League (one of the main driving forces behind the Arab Peace Initiative), so why does Israel have to make nice with the Arab League if the perceived Iranian threat persists? Israel has no incentive to declare peace with the Arab states because they get nothing out of it. Even if there was a brokered peace between Israel and the Arab League, would the Arab League fight alongside Israel against Muslim brothers in Iran if a war were to break out? Unlikely.

This is a convoluted region; the smallest hint of peace like a mirage in the desert--the closer you get, the further away you realize it is.

Wes