Last week's violence in the West Bank reveals just how far ultranationalist Jewish settlers have gone beyond the control of the Israeli government and army.
Some Arabs see him as more of an 'honest broker' in the Palestinian-Israeli conflict. But that conflict may not be a priority.
Condoleezza Rice heads to the area for a summit of powers promoting peace.
Prime Minister-designate Tzipi Livni called on Sunday for parliamentary elections instead of more negotiations with right-wing parties to form a new government.
The outgoing Israeli Prime Minister Ehud Olmert said Israel may have to withdraw from the West Bank if it wants peace with Palestinians, making Tzipi Livni's job of building a new government coalition with hard-liners much more difficult.
Foreign Minister Tzipi Livni won the Kadima Party primary to replace Ehud Olmert who has been beset by corruption charges.
But the ruling Kadima Party, which votes on a new leader Wednesday, may not buy into the former army chief's security policy.