Israeli and Palestinian officials expect President Trump to unveil a Mideast peace proposal by early next year. What nobody knows yet is the shape it will take or if the proposal will be based on creating a Palestinian state, which has been U.S. policy for the last 20 years. In the meantime, the two sides are on their best behavior to avoid being singled out by Trump as an obstructionist party.

Sound smart: The U.S. "peace team" working on the issue is relatively small and very discreet — just five people, including senior adviser Jared Kushner and special envoy Jason Greenblatt. The entire process is being run by Trump's aides, with the State Department, NSC and other agencies providing advice and support. According to U.S. officials, Trump is the driving force on this issue and is personally involved. Israeli officials say they hear Trump is pushing his team to have a proposal soon.

In the last nine months Trump has met Israeli Prime Minister Netanyahu and Palestinian President Abbas separately three times each to discuss his peace initiative. His special envoy Jason Greenblatt has been constantly shuttling between Jerusalem, Ramallah and Arab capitals.

Greenblatt's last trip to the region lasted three weeks, and Kushner, who is officially leading the "peace team," came to the region three times and spends hours every week in phone calls with Arab leaders in order to get their support.

The small, close-knit team has meant almost no leaks and zero public scandals, mistakes or embarrassments. (The other members are Deputy National Security Adviser Dina Powell, U.S. Ambassador to Tel-Aviv David Friedman and Consul General to Jerusalem Don Blome.)

What they're saying:

Netanyahu told U.K. Prime Minister May last week that he's in "wait and see mode" and expecting a proposal late this year or early next year, according to Israeli and British officials. "I don't know what peace plan Trump is about to present and I am not sure anybody knows, but I am happy the Trump team is bringing fresh and out of the box thinking on this issue," he said.

last week that he's in "wait and see mode" and expecting a proposal late this year or early next year, according to Israeli and British officials. "I don't know what peace plan Trump is about to present and I am not sure anybody knows, but I am happy the Trump team is bringing fresh and out of the box thinking on this issue," he said. Abbas told a group of former Israeli members of Knesset that he expects a plan later this year and that Trump has told him he supports the two-state solution and is planning to make his position public soon, according to people present at the meeting.

that he expects a plan later this year and that Trump has told him he supports the two-state solution and is planning to make his position public soon, according to people present at the meeting. A White House official says there is no artificial deadline and the goal is to "facilitate a deal that works for both Israelis and Palestinians, not to impose anything on them".

What to watch: