According to a senior Israeli Ministry of Foreign Affairs official who spoke to Al-Monitor on condition of anonymity, Prime Minister Benjamin Netanyahu intends to react to a possible US peace plan "more positively than expected; perhaps even with a yes." Still, the official emphasized that Netanyahu does not want a two-state solution. The most he is ready to accept is a Palestinian state with limited sovereignty, providing that all of the West Bank remains under Israel's security control.

Following developments in Kurdistan and Catalonia, Netanyahu told his inner circle that Israel will publicly question the notion of sovereignty for all; definitely the notion of full sovereignty. He is actually thinking of a Palestinian autonomy plan, according to parameters acceptable by his right-wing coalition, although obviously unacceptable by the Palestinians.

The official said that intense deliberations are taking place between Jerusalem and Washington. On the Israeli side, it is the prime minister's office and Israel's Ambassador to the US Ron Dermer. On the American side, it is the Middle East peace team, with its two key players — White House senior adviser Jared Kushner and Middle East envoy Jason Greenblatt. Apparently, the administration is getting ready to announce a proposal for Israeli-Palestinian peace with a regional — mainly Saudi — component and with regional cooperation on the anti-fundamentalism front.

Netanyahu is interested in the regional anti-Iran cooperation while paying a minimal "price" on the Palestinian issue, so that he would maintain his special relationship with US President Donald Trump.