There may be a ceasefire on the surface at the Gaza border, but for the Israeli army the threats can come from underground.
So far President Obama has watched from the sidelines. Is he ready to engage; to use his own authority, even if that risks failure?
Israel reacted angrily to an EU instruction not to put 'Made in Israel' on things produced in illegal Jewish settlements in the West Bank.
The US Secretary of State said they would meet again within the next two weeks in either Israel or the Palestinian territories.
Israel's chief negotiator Tzipi Livni said that resuming peace talks is in the interest of both peoples.
"I hope that there is a bit of understanding now that this is in the interest of both of our peoples to reach an agreement and to end this conflict", she said.
The US Secretary of State John Kerry is hosting an Iftar dinner at the State Department for Israeli Justice Minister Tzipi Livini and Palestinian chief negotiator Saeb Erakat.
Palestinian President Mahmoud Abbas has said that no Israeli settlers or border forces could remain in a future Palestinian state as he laid out his vision for the final status of Israeli-Palestinian relations ahead of peace talks due to resume in Washington.
Abbas said that and that Palestinians deem all Jewish settlement building within the land occupied in the 1967 Middle East war illegal.
"In a final resolution, we would not see the presence of a single Israeli - civilian or soldier - on our lands," Abbas said in a briefing to mostly Egyptian journalists.
"East Jerusalem is the capital of the state of Palestine ... if there were and must be some kind of small exchange (of land) equal in size and value, we are ready to discuss this - no more, no less," he said.
Israel Justice Minister Tzipi Livni and chief Palestinian negotiator Saeb Erekat have resumed peace negotiations for the first time in nearly three years meeting at a dinner at the US State Department.
There are hopes for progress in the Middle East peace talks as they resume today for the first time in three years.
But many Palestinians and Israelis remain pessimistic as they feel have been down this road before and optimism is in short supply.
ITV News' Middle East Correspondent Geraint Vincent reports.
President Obama says Israeli and Palestinian negotiators face "hard work and hard choices" in direct peace talks set to open in Washington tonight.
The meeting comes after a divided Israeli Cabinet agreed to release 104 long-term Palestinian prisoners convicted of deadly attacks.
"The most difficult work of these negotiations is ahead, and I am hopeful that both the Israelis and Palestinians will approach these talks in good faith and with sustained focus and determination," Mr Obama said in a statement.
The US president said he believed peace between the two parties was both "possible and necessary."
U.S. Secretary of State John Kerry has named former U.S. ambassador to Israel Martin Indyk as his main envoy in Israeli-Palestinian talks starting in Washington tonight.
Mr Indyk, 62, has served two terms as US ambassador to Israel from 1995 and 2000, and worked with Israeli prime ministers Yitzhak Rabin and Ehud Barak on the Oslo peace process.
The announcement follows Israel's approval of the release of more than 100 Palestinian prisoners.
Israeli and Palestinian negotiators are to resume peace talks in Washington today after a divided Israeli Cabinet agreed to release 104 long-term Palestinian prisoners convicted of deadly attacks.