As in previous years, 2011 is expected to be the Year of Iran. Iran, as well as Turkey, emerged in the last decade as regional superpowers, leaving behind the Arab world, and in particular, some Arab states, especially Egypt and Saudi Arabia, which used to play a leading role in the region's affairs. Against this background, it is no surprise that moderate Arab countries, i.e., Egypt, Jordan and the Gulf States, are ready to coordinate their moves and even to cooperate with Israel. These countries believe, however, that a progress in the Palestinian-Israeli peace process can ease and even legitimate their dialogue with Israel in the eyes of the Arab public opinion. However, it is unlikely that in the shadow of Iranian-American-Israeli tension any progress will be achieved in the peace negotiations. Thus, much is dependent on the American policy and on American moves. In 2010 the Obama Administration failed in its efforts to reach a breakthrough in the peace negotiation, and it unclear whether the Administration can change its policy in a way that will ensure its success. At the same time, Iran's allies, Hizballah, Hamas and Syria, deepened their cooperation with Iran, preparing themselves for a possible confrontation which might start in the Persian Gulf and from there might spread to the shores of the Levant. In the mean time, Syrian President is sending mixed signals to Israel as for his readiness to resume peace negotiations with the Jewish state. At the same time, he threatens Israel that if peace can not to be achieved, Syria might start a war against Israel to force it to accept the Syrian demands (total Israeli withdrawal from the Golan Heights). Thus, in this front too, Israel and the Arabs find themselves in the face of the same dilemma – war or Peace.