To jump-start peace talks and boost American credibility with Arabs, U.S. officials tell Time that they are thinking about dangling an international offer of diplomatic recognition for Palestine. If it helps Colin Powell coax the Israelis and Palestinians back to negotiations, the dramatic gesture would be valuable. But it may not have any lasting effect on two sides so hate-soaked and at odds. When Crown Prince Abdullah of Saudi Arabia offered in February to broker Israel's peace with the Arabs in exchange for a Palestinian state, the plan was applauded as a step forward – although land-for-peace has been the bedrock premise for ending the conflict since 1967. Now even that basic idea is at risk, since both sides have trampled their interim agreements, nullifying virtually every step they ever took in search of peace.

That goal will remain elusive until Israel and the Palestinians come to terms on the so-called final-status issues that require the toughest compromises. The antagonists came close in a series of taboo-shattering discussions begun at Camp David in 2000 that nearly concluded before President Bill Clinton and Prime Minister Ehud Barak both left office in early 2001. If negotiations ever do resume, Arafat wants to start where those talks left off. But Sharon has revoked previous Israeli offers. Here are the four chief obstacles to peace in the Middle East.