Israeli officials: Palestinians routed, about to fold

"The Palestinians were routed and they are about to fold. Not everything is sealed but it is clear that they have received a significant blow from the American and French positions," they said.

More on the showdown at the UN:

• Uncertainty surrounds Palestinian UN bid
• Obama UN address angers Palestinians
• Op-ed: Palestine an Israeli interest
  

Israeli delegation at the UN (Photo: Shahar Azran) 

According to sources in the delegation, the Americans and Europeans are beginning to understand the harsh reality of the present Middle East. Israel presented a vast amount of intelligence information pointing to al-Qaeda's penetration in Egypt and the growth of radical Islam in the Arab country.

• For full coverage of PA's statehood bid, click here
  

Diplomatic officials stated that Israel warned that Sinai could turn into a second Afghanistan. "The images from the storming of the Egyptian embassy in Cairo and Mubarak's trial changed the Western perception of what is actually transpiring in the Middle East," they said.

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In consultations between Jerusalem and Washington, it was determined that Obama would clarify to Palestinian leader Mahmoud Abbas the economic consequences of a unilateral declaration. 

Watch the Obama-Netanyahu press conference at the UN

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The US President will also demand of Abbas to meet with Prime Minister Benjamin Netanyahu as soon as possible, and launch a direct dialogue.

Diplomatic sources said that Obama's UN address was not only a result of the geo-political reality of the Middle East, but also a result of the American leader's domestic political situation.

In recent months, Israel has been operating behind the scenes urging Congress members to press Obama to support Israel, while stressing the ramifications of the Palestinian move.

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