Secretary of State Antony Blinken quietly slipped into Israel on Thursday for meetings in Ramallah and Jerusalem to further a bold proposal that may result in a two-state solution for Israel and Palestine. Blinken believes the ongoing hostage releases and ceasefire talks provide a diplomatic opening for a long-lasting peace.

Blinken outlined his proposal in a speech Thursday night.

Israel must improve the lives of Palestinians in the West Bank and Gaza “in immediate, tangible ways.”

Israel must provide Palestinians with a credible path toward statehood.

The US will propose “practical steps” that can be taken to this end.

A “revitalized” Palestinian Authority will govern a united West Bank and Gaza.

The government in Ramallah must reform, end corruption, and promote a free press.

My guest on this week’s podcast is investment banker and Middle-East policy expert Rick Petree. His diplomatic roots, operational experience, and nuanced knowledge make him an ideal expert to assess Blinken’s gambit.

As Rick and I were speaking, the final 8 hostages to be released by Hamas under the 4-day ceasefire - were in transit back home to Israel after 55 days in captivity. 120 Israelis have been freed, 75 remain in captivity.

We discuss how the crisis presents an opportunity for peace and how both Palestinian and Israeli public opinion seem increasingly receptive to dialogue and compromise after decades of failed security doctrines.

Furthermore, the potential spoils of vast offshore gas reserves discovered between Israel and Gaza suggest possible shared prosperity if political cooperation can be achieved.

No naïve optimism is warranted. And yet Blinken’s maneuverings hint that behind the hostage tragedy, economic incentives, and weariness of violence, a cautious hope burns for progress between historic enemies. The ingredients for peace may be aligning if key leaders can seize the moment.