The Obama administration has publicly insisted that Israel freeze all expansion – even in East Jerusalem, which Israel claims as part of its undivided and eternal capital.
"Netanyahu has made it clear from the very start that he's not interested in peace," says Sami Moubayed, a political analyst in the Syrian capital, Damascus. "It shows you exactly what the Syrians have been saying for the last three or four months: There is no peace partner today. People thought Barack Obama would have enough clout to force Netanyahu to change his attitude, but there's only so much Obama can do."
Saudis also express doubt that Obama will succeed.
"We think Obama maybe came at the wrong time [because], unfortunately, with the current Israeli government, we think there is no hope to make any progress," says one senior civil servant who asked not to be named because he is not authorized to speak on the matter.