Biden and Bibi agree that the Saudi mega-deal must include measures to keep the two-state solution alive

President Biden and the Israeli prime minister Benjamin Netanyahu agreed last week that mega deal with Saudi Arabia It should be based on the principle of preserving the prospect of an Israeli-Palestinian peace deal in the future, an Israeli official and a source briefed on the meeting told Axios. But the details still need to be worked out.

Because it is important: The Biden administration is pushing to reach a mega deal with Saudi Arabia and Israel before the 2024 presidential campaign consumes Biden’s agenda.

• The White House made it clear to the israeli government that he would have to make major concessions to the Palestinians as part of an agreement with Saudi Arabia that includes standardization between the kingdom and Israel.
• Secretary of State Tony Blinken reclaimed Saudi leaders told him that the Palestinian issue would play a central role in any future agreement with Israel.

Behind the scenes: White House Middle East czar Brett McGurk and Biden senior adviser Amos Hochstein held a preparatory meeting with Netanyahu aides the night before the two leaders met, two American and Israeli officials said.

• McGurk and Hochstein asked Netanyahu’s advisers what the prime minister was going to tell Biden about the concessions he is willing to make to the Palestinians as part of the mega-deal with Saudi Arabia.
• According to US and Israeli officials, Netanyahu’s advisers refrained from going into details and said the prime minister would discuss it privately with the president.
• The White House and the Prime Minister The office declined to comment.

When Biden and Netanyahu met, A major part of their hour-long meeting focused on the Palestinian component of the deal, the American and Israeli officials said.

• Biden did not give Netanyahu a list of demands for concessions to the Palestinians, but told the prime minister that he wants Israel to take steps that keep open the option of a two-state solution with the Palestinians, according to an Israeli official and a source briefed on the meeting.
• The Israeli official and the source briefed on the meeting said Netanyahu agreed with the concept of taking steps to keep the door open to a future peace deal with the Palestinians.

Yes, but: The debate over the Palestinian component of the Saudi megadeal is it is just beginning, an Israeli official said. It will focus on the question of how to translate the general concept that Biden and Netanyahu discussed into practical measures.

• The main challenge is that each side may interpret the broad concept of keeping the two-state solution alive very differently, a reality that can create significant gaps between the parties when they begin to get into the details.
• Netanyahu also told Biden last week that palestinian officials They should be part of the process to reach a mega deal that includes normalization between Saudi Arabia and Israel, but they should not have the power to veto parts of it, according to a senior Israeli official.

The panorama: The Palestinian component of the deal is a politically charged issue for the United States, Saudi Arabia and Israel.

• The White House needs Israel to make significant enough concessions to the Palestinians to convince Senate Democrats to support other parts of the megadeal, such as a U.S.-Saudi defense treaty.
• Saudi Crown Prince Mohammed bin Salman needs Israel to take action toward the Palestinians to build support for a normalization deal in the country and across the Arab and Muslim world.
• Netanyahu desperately wants the deal with Saudi Arabia. But making significant concessions to the Palestinians would likely anger the far-right parties in his coalition and could bring down his government.

Getting closer: The Palestinian Authority has established a set of deliverables he would like to see as part of any deal, including gaining greater control over parts of the occupied West Bank, full membership in the UN and reopening the US consulate in Jerusalem.

Status of the situation: The new Saudi ambassador to the Palestinian Authority visited Ramallah on Tuesday and met with President Mahmoud Abbas.

• The ambassador said Saudi Arabia would work towards the establishment of a Palestinian state with East Jerusalem as its capital.
• On the other hand, on Tuesday the Israeli Minister of Tourism arrived in Riyadh to participate in a conference of the World Tourism Organization. This was the first official and public visit by an Israeli minister to the kingdom.

Go deeper: Inside the Biden-Netanyahu meeting