Tough talk from the WaPo edit board:
U.S. and Israeli officials are working on a compromise that would allow Israel to complete some housing now under construction while freezing new starts for a defined period. Arab states would be expected to take steps in return. Such a deal will expose Mr. Obama to criticism in the Arab world -- a public relations hit that he could have avoided had he not escalated the settlements dispute in the first place. At worst, the president may find himself diminished among both Israelis and Arabs before discussions even begin on the issues on which U.S. clout is most needed. If he is to be effective in brokering a peace deal, Mr. Obama will need to show both sides that they can trust him -- and he must be tough on more than one country.