Richard Wolffe and Holly Bailey have a plan in this week’s edition of Newsweek.

“Given his deep immersion in Iraq, as well as his position as the leader of the world’s only superpower, Bush now needs to work on the whole puzzle.

As Britain’s Tony Blair recently pointed out, at the heart of the region’s politics stands the Israeli-Palestinian conflict. Saving Lebanon wins Bush little gratitude, except from the Lebanese. Saving the Palestinians, on the other hand, could transform his presidency and the fate of the country his legacy depends upon: Iraq.

The Bush administration’s approach to what is left of the Palestinian Authority remains mired in its anti-Hamas stance. The Bush administration considers Hamas a despicable terrorist group that glorifies mass murder. But it isn’t rocket science to figure out ways to sidestep the Hamas government—through Fatah (its old rival), the United Nations or nongovernmental groups. It is in nobody’s interests—including Israel’s—for Gaza to continue its descent into gangland anarchy. It’s also in nobody’s interests to give up on the plans of Israeli Prime Minister Ehud Olmert to withdraw from parts of the West Bank. . . .

“Bush doesn’t need to approach the Palestinian situation alone. He should do so together with Egypt, Jordan and Saudi Arabia—and he could use it as a template for cooperation elsewhere, such as Iraq and Iran. He may not succeed in bringing peace to the Palestinians and Israelis. But the process itself would boost Bush’s low standing in the region and his ability to achieve his goals, especially in Iraq. The lesson of Lebanon, and of Bush’s second term, is that the United States is far more powerful when it works with its friends on the world’s toughest challenges.”