"We screwed up..."

Ehud Yaari:

They have reached the conclusion that keeping a distance from Israel, picking unnecessary fights with Israel, was not going to advance the peace process. They are not getting anything in return from the Arab world. This is why Rahm Emanuel, chief of staff to Obama, when he came to Israel recently on a private visit, a bar mitzvah for his son, said in so many words, "We screwed up".
There has also been a change of heart in Washington concerning Iran. I have solid information indicating that the top echelons of the administration -- National Security Council, Pentagon, State Department -- have reached the conclusion that the US cannot adopt the option of containing a nuclear Iran..... This option is now apparently off the table.
There is a change of policy not only in terms of sanctions, both at the UN Security Council and those unilateral sanctions now imposed by both the US, the EU and others; but also an understanding by the administration that in no way can Iran be allowed to acquire a nuclear weapon.
How do we know this? Among other things, because this is what the Americans have been telling Arab leaders over recent weeks.
And why have they changed their minds? Because of what the leaders of the Gulf states, including the king of Saudi Arabia, have been saying to Obama for some time now; "We cannot live with a nuclear Iran."
This is something dramatic which also provides a basis for a new understanding with Israel. I make a caveat here -- the fact that the Americans have reached a conclusion that they will not allow Iran to go nuclear does not mean Mr Obama has to take a decision in half a year, a year, or even two.
They have time. ........ The Iranians are not there....
And finally, Iraq. In Iraq we had elections that constitute, in my humble opinion, a major victory to George W. Bush. The good guys won....., Iyad Allawi' backed by Saudi Arabia, and Prime Minister Nouri al-Maliki's .....
US troops have to start moving out, this year. But, suddenly, on Iraq, new music is played on the White House piano. They are saying, "The Americans may be out, but we need UN forces". That will consist of basically American soldiers. They do not want a government in Iraq that is going to be influenced, sponsored, coerced if you want, by the neighbouring Iranians, and will find a way to ensure this does not happen.
I believe Mr Obama and some of the people around him are reaching the conclusion a policy that is based on engagement, on "unclenching the fist", "let's talk", and especially, "let's talk to enemies", is probably a good campaign slogan.
But in the "Muddle East" region, where I come from, it doesn't really work. They got a no for an answer from the Syrians, they repeatedly get a no from the Iranians, they get slapped back all over the place. They are saying to themselves, "That's about as much as we are prepared to take."