By Jeffrey Heller
JERUSALEM, Sept 2 (Reuters) - A week after the guns fell silent in the Gaza war, Israel and the Palestinians seem to have little appetite or incentive for a return to U.S.-sponsored peace and statehood talks that collapsed five months ago.
With conflicts raging in Ukraine, Iraq and Syria - and the future of the Gaza Strip largely uncharted by a broadbrush Egyptian-mediated ceasefire deal - world powers also are not rushing headlong into the Israeli-Palestinian stalemate.
The parties themselves, Prime Minister Benjamin Netanyahu's bickering governing coalition and Palestinian President Mahmoud Abbas, are on a collision course over threatened Palestinian unilateral moves toward statehood and exploration of war crimes prosecution against Israel in the absence of direct talks.
Israel drew Palestinian and international criticism on Sunday by announcing a major appropriation of occupied land in the West Bank, the most significant such move in 30 years.
As head of a governing coalition divided over trading territory for peace, Netanyahu is now speaking, in amorphous terms, of an alternative route towards ending decades of conflict - a "new horizon" - or possible regional alliance with moderate Arab countries alarmed, like Israel, by radical Islam.
Closer to home and with the Gaza situation still in flux, there is nothing on the immediate horizon as far as peacemaking with Abbas is concerned, Israeli government sources said.
Under the Egyptian-brokered truce agreement, Israel and the Palestinians agreed to address complex issues such as Hamas's demands for a Gaza seaport and the release of Palestinian prisoners via indirect talks starting within a month.
With the start of those negotiations still up in the air, Netanyahu wants to see whether Abbas takes over responsibility from Hamas for administering Gaza's borders and that measures are taken to prevent the group from smuggling in weaponry.
Netanyahu, who appears to be weathering an approval rating plunge after the Gaza war ended without a clear victor, took a swipe at Abbas last week, summing up a conflict which the Palestinian leader persistently tried to bring to an end.
"Abu Mazen has to choose which side he is on," Netanyahu told a news conference, using Abbas's nickname.
The comment harked back to Israel's decision in April to cut off peace talks with Abbas after he clinched a unity deal with Hamas, a bitter rival that had seized the Gaza Strip from his Fatah forces in 2007.
Those negotiations, on creating a Palestinian state in the occupied West Bank and in the Gaza Strip, were already going nowhere, with Palestinians pointing to expanding Israeli settlement on land they claim as their own and balking at Israel's demand to recognise it as the Jewish homeland.
In an editorial laden with scepticism, Israel's liberal Haaretz newspaper questioned whether "as in the past" Netanyahu's remarks on casting a regional peace net, "are only empty slogans".
Some of his cabinet ministers are also pressing Netanyahu to get moving on a wider track.
"We cannot and will not allow a situation whereby this ceasefire is the beginning of the countdown to the next round of fire. If we don't take the diplomatic initiative, this is exactly what will happen," Finance Minister Yair Lapid said.
Justice Minister Tzipi Livni, Israel's chief negotiator in now-dormant talks with the Palestinians, said: "(Netanyahu) has to be put to the test on this."
Livni, speaking on Israel Radio, said Israel should "create a front with Egypt, Jordan and Saudi Arabia - those countries threatened by all of those beheaders running around the region".
But, she said, "they can cooperate with us only if there is a basic minimum of a peace process - dialogue with the moderate elements in the Palestinian Authority".
In the past, Netanyahu has expressed little interest in embracing a regional peace plan, such as the 2002 Arab initiative that offered normalised ties with Israel if it withdrew fully from territory captured in a 1967 war.
But last year, he signalled in a speech to parliament a readiness to consider the proposal, raised at an Arab League summit 12 years ago, as long as it did not contain "edicts".
Any land-for-peace moves would elicit even more dissent from right-wingers in his government who have been vocal over Netanyahu's reluctance to heed their calls during the Gaza war for a full-scale invasion to crush Hamas.
For now, he appears to be in little danger of seeing his political partnerships unravel.
About a month into the war, 77 percent of Israelis surveyed in a Haaretz-Dialog poll described Netanyahu's performance during the conflict as either good or excellent. That figure dropped to around 50 percent after the ceasefire was announced.
But the snap poll taken a day after the truce went into effect showed that despite his flagging popularity, he continued to top, by a wide margin, the list of politicians whom Israelis believed were most suited to lead them as prime minister.
The second-place pick was "Don't know". (Editing by Alison Williams)
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