(IsraelNN.com) Arab intransigence and the realization that Iran nukes might be more important than Jewish houses are leading the Obama administration to a slight shift in policy.

The San Francisco Sentinel reports that “the U.S. administration has not been successful in securing commitments from Arab countries to take steps toward normalizing relations with Israel.” Similar reports, all based on “Jerusalem government sources,” appear in other news sources around the world.

The reports say that not only would Arab countries, led by Saudi Arabia, not move towards normalization with Israel while Israel continues with settlement construction, but they would also not do so even if Israel agrees to freeze building in Judea and Samaria.

“In such a situation,” the source is quoted as saying, “the Americans can’t continue demanding gestures only from Israel, such as the demand that Israel freeze settlement construction.”

Ex-Ambassador: There Were Bush-Sharon Understandings
In addition, former Israeli Ambassador to the U.S. Zalman Shoval says he notices the first signs of a slight change in the Obama administration’s emphasis. 

“I have just returned from a series of important and interesting talks with leaders in Washington,” Shoval told Arutz-7’s Hebrew newsmagazine, “including heads of the previous administration, such as former National Security Council head Stephen Hadley and Elliott Abrams. They all confirmed what was publicized this week, that there were understandings between the Bush Administration and Ariel Sharon [that Israel could continue settlement construction after the Disengagement from Gush Katif – ed.]. They even drew the maps for me, and I am certain that the Obama administration knows these facts too.”

Shoval said that there is a willingness in Washington “to find solutions for the mini-crisis that has arisen on the matter of settlements. The Americans realize that this dispute has grown out of proportion, and that there are more important things than the settlements – for instance, the recent events in Iran.”

Question Mark About US Iran's Policy
Shoval says the Americans are beginning to rethink their policy vis-à-vis Iran: “They see a large question mark about their policy until now, because everyone now understands that Ahmadinajad and Khamenei have entrenched themselves into their regime once again, and the chance for dialogue with them is very slim. This regime has revealed itself to be extremist – not only towards the world, but even towards its own people – and American public opinion will no longer accept the concept of dialogue with such a government. Even the media there, which until now has supported Obama, have begun attacking the government. There is criticism not only about Iran, but even regarding statements by some Obama people that understandings were not reached in the past regarding the settlements.”