The Middle East has been the graveyard for many U.S. presidents' diplomatic ambitions. The best intentions and the dedication of considerable time and effort have done little to overcome the seemingly intractable Israeli-Palestinian conflict.

Yet rarely if ever has a U.S. president been insulted as plainly as Barack Obama was last week when, during a visit by Vice President Joe Biden, Israel announced that it would expand settlements in the West Bank. The move may trigger a crisis between Israel and the United States, its most important Middle East ally. At a minimum, it has hurt Israel's position in stalled peace talks, and could even undermine the government of Prime Minister Benjamin Netanyahu.

Since taking office, Mr. Obama has identified a peace agreement between Israel and Palestinians as a foreign policy priority. His administration has pressed Israel to freeze the construction of new settlements on land claimed by both Israel and Palestinians as a first step toward the resumption of peace talks.