Domestic popularity of the two leaders

However, in both camps there are likely stumbling blocks, which Abbas and Netanyahu may find tough to shift.

Golan feared Abbas will not gain much support at home for joining any talks with Israel right now. A poll published earlier this month and one to be issued later this week both indicate that Abbas' popularity is on the up on the Palestinian street.

"The reason is that he has been holding firm in not agreeing to just go back to talks, so there's going to have to be something said about these talks that will strengthen Abbas," said Golan.

The discussions may well produce nothing, particularly because they are likely to be indirect. If that is the case then his popularity could well freefall once again, she said.

Domestic support for Abbas was in decline until recently, because he was seen to be weak in the face of the U.S. pressure last year regarding the Goldstone inquiry into the Gaza war, which took place some 16 months ago.

Similarly, Fighel was not convinced that Netanyahu can create the necessary environment for concessions because of the political make up of his own coalition back home.

His government is mainly composed of hawks, with just one party, Labor, offering a dovish shoulder for Netanyahu. Indeed, Labor's leader, Ehud Barak, is in Washington this week attempting to set the stage for Mitchell's scheduled return to the Middle East next week.

The U.S. envoy hopes Barak's visit, coupled with that to the Middle East of U.S. Deputy Assistant Secretary of State for Near Eastern Affairs David Hale, will pave the way to the early resumption of peace talks.

There is also talk in Israel right now of a possible formalization of the peace process when Abbas is slated to meet Obama at the White House next month.

Yet despite the guarded optimism all parties involved realize that even if talks do begin in the next couple of weeks, the substantial gaps between the Israelis and Palestinians mean the odds of their success are still extremely long.