While Israeli leaders try to downplay the current tension with the US, unnamed officials in Jerusalem acknowledge that Israel's relationship with America is likely to change dramatically for the worse over the course of President Barack Obama's term in office.
In remarks carried by Ha'aretz, Israeli government sources said the recent behavior of Obama and other high-ranking US officials toward Israel points to an imposed peace settlement with the Palestinians and wider Arab world over the next two years.
The sources noted that one of the US demands of Israel to make up for the recent perceived insult of continud Jewish building in Jerusalem was that all final status issues be on the table in upcoming US-brokered indirect peace talks.
If Israel agrees to that demand, it would mean giving the Obama Administration much more influence over the peace terms Israel would have to accept regarding issues such as control of Jerusalem, final borders and the return of so-called "Palestinian refugees."
Israeli officials again warned that Obama's behavior is hardening Palestinian positions and putting genuine peace even further out of reach. They also cautioned that Israeli public trust in America would further wane.