During the presidential campaign, Netanyahu hosted Obama opponent Mitt Romney in Israel as if he were already a world leader. Netanyahu denied backing either candidate, but his words and actions clearly showed favoritism for Romney.
On Iran, Netanyahu called at the United Nations in September for the United States to draw a "red line" on Iran's nuclear program, beyond which Iran would face military action. Obama continues to insist there is time for diplomacy, but has said he would not countenance a nuclear-armed Iran.
"The more Netanyahu believes Obama is serious about preventing Iran from getting a bomb, the better they will manage their relations," said David Makovsky of the Washington Institute for Near East Policy. "If not, the issue of an Israeli first strike on Iran becomes more likely."
Miller, of the Woodrow Wilson Center, said Obama will be too consumed with battling Congress on the budget, gun control legislation and other issues to spend much time on disagreements with Netanyahu.
"Is he going to go after Israel-Palestinian peace talks or war with Iran given all his domestic challenges?" Miller asked. "He will go to extreme lengths to avoid war with Iran."
He said the two leaders are moving further apart on the Palestinian issue, but have found some consensus on Iran. "For the next six to eight months, I don't think the president is going to push on those issues."
But Nir, of Peace Now, says time is running out for a peace deal with the Palestinians and Israel could face another armed uprising like the one that bloodied the region in 2000.
"There's more and more an atmosphere among Palestinians that there is no political horizon," he said, "a feeling that diplomacy doesn't work."
Associated Press writer Amy Teibel in Jerusalem contributed to this report.
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