Some of the U.S.’s closest European allies are threatening to follow Sweden and unilaterally recognize a Palestinian state if steps aren’t taken to revive the Middle East peace process, according to senior U.S. and European officials.

This emerging position in some of Europe’s capitals is placing the Obama administration in a diplomatic bind reflecting its own strained relationship with Israeli Prime Minister Benjamin Netanyahu and the breakdown this spring of U.S.-led talks between the Israelis and Palestinians.

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