AP Photo

We were thrilled when President Obama decided to plunge fully into the Middle East peace effort. He appointed a skilled special envoy, George Mitchell, and demanded that Israel freeze settlements, Palestinians crack down on anti-Israel violence and Arab leaders demonstrate their readiness to reach out to Israel.

Nine months later, the president’s promising peace initiative has unraveled.

The Israelis have refused to stop all building. The Palestinians say that they won’t talk to the Israelis until they do, and President Mahmoud Abbas is so despondent he has threatened to quit. Arab states are refusing to do anything.

Mr. Obama’s own credibility is so diminished (his approval rating in Israel is 4 percent) that serious negotiations may be farther...