President Trump's statements about Palestinian leadership — and Jerusalem — at his meeting in Davos today with Israeli Prime Minister Benjamin Netanyahu showed the seriousness of the crisis between the U.S. and the Palestinians. And they were further evidence that the "peace plan" the White House was working on for the past year is in serious risk of dying.
Why it matters: It is hard to overstate how important and sensitive the Jerusalem issue is for both Israelis and Palestinians. If Jerusalem is off the negotiating table, as some understood from Trump's statements today, it means the "ultimate deal" he is trying to achieve is off the table. There is not one living Palestinian who will agree to sign a peace deal with Israel without having the capital of Palestine in East Jerusalem.