Fayyad's departure is not good for peace. And it limits Obama's options. Rosner explains:

[W]hile the Palestinian partner is becoming less promising and more complicated to deal with, it seems that the administration is pulling out of the bag the only available trick: pressuring Israel on the settlement issue.
...
This pressure from the Obama team was to be expected but, with the resignation of Fayad, its futility will be even more evident than usual. Those who expect the freezing of settlement activities to make peace more probable should prepare for disappointment. Since peace is not in the cards as a short-term cause, Obama may want settlement activities halted in hopes of not derailing future agreements. That would be long-term future -- when a new Fayad is found.

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