After new setback, Obama Mideast plan in doubt

The US decision to abandon its efforts to coax a settlement freeze out of Israel marks the biggest failure yet in the Obama administration's much-trumpeted Mideast peace push, casting serious doubts over whether the president can broker a deal by his September target.

Israelis and Palestinians said Wednesday that a scramble was on for a magic formula out of the impasse. But neither side showed any flexibility, and the Palestinians voiced new signals about trying to establish a state without Israel's agreement. (AP)