The designation of Hezbollah as a terrorist group by Egypt highlights a fault line developing in the Middle East over relations with Israel and the United States.

On the one hand, there are those who favor negotiations to resolve the dispute between Israel and the Palestinians. These countries include, most prominently, Egypt and Jordan, which both have signed treaties with Israel. Saudi Arabia also has promoted a negotiated solution.

Iran and Hezbollah, on the other hand, have emphasized what they call “resistance,” which means the use of arms to wrest territory from Israel ‘s control. The admission by Hezbollah’s leader, Hassan Nasrallah, that one of the people Egypt arrested was supplying arms to Hamas on Hezbollah’s behalf indicates that Hezbollah’s “resistance” is not limited to Lebanese sovereign territory.

Although Egypt’s action is directed against Hezbollah (and, by extension, Iran), it also carries a warning for the United States and Israel. The “resistance” argument is gaining ground in the Middle East. If it is to be successfully countered, negotiations need to deliver something tangible for the Palestinians—and soon. Otherwise, the regional governments who favor negotiation will find their arguments undercut, which could not only jeopardize hopes for Middle East peace, but might also threaten their own stability.