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Both Israel and the Palestinian Authority have chosen policies that circumvent direct political dialogue. Adopting a pincer-like strategy that closes in on Israel, the PA has concentrated its efforts on building institutional and economic infrastructures and seeking international backing for the emerging state. For its part, the Israeli government has focused on attempting to curb the PA’s diplomatic momentum; at the same time, it has been careful to continue its security cooperation with the PA and has supported the economic development underway in the West Bank. However, this policy has not diffused the criticism leveled against the Israeli government for positioning obstacles to revival of the dialogue. Indeed, the threat of international isolation has become so palpable that it is doubtful that Israel can avoid measures to fundamentally change the political and territorial realities in the conflict arena.