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A follow up to Sunday’s post on Syria, a top aid of Benyamin Netanyahu, Israel’s PM-designate, told the Jerusalem Post that the Likud leader has no interest in sidelining peace with the Palestinian Authority in favor of a Syria track. This comes as Bashar-al-Asaad told an Arab newspaper that true peace with Israel cannot be achieved until the plight of the Palestinian people is addressed.

It seems that both sides are posturing and setting up low expectations for a possible peace deal. A likely reason is that peace with Syria has failed to materialize as both sides have made difficult demands of each other. Israel wants a demilitarized Golan, while Syria wants Israel to recognize the pre-1967 borders. The last attempt at peace between the two parties was under the Clinton administration in 2000.

Sec. of State Hillary Clinton’s overtures to Syria, including a brief meeting at the Gaza Aid Conference with the Syrian Foreign Minister and the deployment of two senior envoys to Damascus, has been the sharpest diversion from the Bush administration on Middle East policy. Syria, considered by many as a member of ‘the axis of evil’ was isolated by Americans until it met demands of dropping support for Hizbullah and Hamas and ending its alliance with Iran. The moves are a clear indication that the Obama Administration’s route to peace in the Middle East will begin with Syria.

The potential gains from the alliance are obvious. First and foremost, it would further isolate Iran and bring a key Arab nation under U.S. influence. Syria could also help the United States’ mission in Iraq especially on issues of border control and refugees. The move would increase pressure on Hamas to halt its bombing campaign against Israel and come to the negotiating table.

However, the downsides are also severe. A failed agreement may lead to a further deterioration of relations between the two parties and would be a significant blow to the larger peace process. Even if successful, United States would legitimize the weak government of Bashar-al-Assad, fueling the anger of many in the Muslim world who are against American support for undemocratic regimes in the region. Either way, American move towards Syria is risky and full of uncertainties but could pay off handsomely.