The Israeli government has basically accepted a three-month freeze on all settlement construction, including natural-growth-related construction.

This is a face-saving measure for Obama. The Arabs will fail to deliver anything in response to the Israeli gesture, such as easing the boycott. The construction moratorium will expire without damaging Obama’s reputation for being able to control Israel.

On other hand, the settlement freeze undermines Israel’s plans to annex the settlement blocs. By freezing construction, she implicitly accepts the eventual transfer of the settlement blocs to the Arabs.