A new moment seems to be dawning in the Middle East. Barack Obama’s carefully crafted speech in Cairo was widely applauded in the region, suggesting U.S. influence is on the rise. Lebanon’s elections brought a pro-Western alliance to power, not Hezbollah extremists. Iran is in turmoil over plausible claims that the regime in power stole recent elections from its moderate opposition. Given the shifting political landscape, how long can Israeli Prime Minister Benjamin Netanyahu resist Obama’s pressure to bend on the Palestinian question? This comprehensive article considers Bibi’s dilemma.