Talks Signal Mideast Shift -- U.S., Israel & some of their European allies see their policy of isolation has failed.

From The New York Times:

After years of escalating tensions and bloodshed, the talk in the Middle East is suddenly about talking. The shift is still relatively subtle, but hints of a new approach in the waning months of the Bush administration are fueling hopes of at least short-term stability for the first time since the invasion of Iraq in 2003.

Much is happening, adding up not to any great diplomatic breakthrough, but to a distinct change in direction. Syria is being welcomed out of isolation by Europe and is holding indirect talks with Israel. Lebanon has formed a new government. Israel has cut deals with Hamas (a cease-fire) and Hezbollah (a prisoner exchange).

On Wednesday, the United States agreed to send a high-ranking diplomat to attend talks with Iran over its nuclear program, and was considering establishing a diplomatic presence in Tehran for the first time since the 1979 revolution and hostage crisis.

The United States, Israel and some of their European allies have begun to recognize that their policy of trying to defeat their enemies by isolating and vilifying them has failed.

The West’s opponents — Iran, Syria, Hezbollah and Hamas — also appear to recognize that the cost of ratcheting up tensions may be too high. Syria and Iran are suffering serious economic problems and could benefit from better relations with the United States and Europe.