Although abortive ‘proximity talks’ between Israel and the Palestinian Authority were unlikely to bear fruit, the Netanyahu government’s recent brazenness when dealing with Washington will have consequences for both sides of US-Israeli relations.

It is widely believed that these talks were never going to produce a long-term solution to the Israel-Palestine conflict. While that may be the case, the talks would have, at the very least, had symbolic value as a step in the right direction. They also would have proved useful for both parties involved: the Palestinian Authority could have demonstrated its continued relevance vis-à-vis Hamas and Prime Minister Benjamin Netanyahu could have had the opportunity to mollify certain ‘peacenik’ elements of his governing coalition.

The ill-timed announcement of new East Jerusalem construction during a ‘goodwill visit’ by Vice President Joe Biden has seriously damaged US-Israeli relations.  Both David Axelrod and Secretary Clinton have gone on to call the move a ‘grave insult.’ Vice President Biden, himself a long-term Israel supporter and self-proclaimed ‘Zionist,’ also condemned the move as something that undermines the peace process.

On the American side, this high-profile diplomatic insult will afford the Obama administration more political space to take a hard line on Israel. Domestic pressures from the pro-Israeli lobby will be offset by the growing consensus that the current government in Israel is abusing its special relationship with the United States. It definitely doesn’t help that this latest diplomatic insult embarrassed one of Israel’s biggest supporters in Joe Biden.