On the one hand, the situation reduces Arafat s leverage in the negotiating process. He cannot claim that the entire Arab world is behind him and that Israel must face its wrath unless it meets his terms. Moreover, if a Palestinian state is established, Israel has less concern that an Arab alliance will try to use such an entity against itself. On the other hand, Israel would like the Arab and Muslim states to endorse any agreement it signs with the Palestinians and to provide the PA with financial aid that would make a political settlement more stable. At the same time, though, the U.S. effort to mobilize sectors of the Arab world to encourage Arafat toward concessions appears equally futile.
Arab governments are wary of jeopardizing relations with the United States.
They need U.S. protection and their economies are more intertwined than ever with those of the West. Yet Arab governments also have little incentive to be active in encouraging Arafat to settle for less. Arab states have differing views and interests regarding the peace process and even Israel itself. Clear change has been visible even in Syria and in its involuntary Lebanese satellite. Some regimes have a real material interest in limiting confrontation.