WHEN the "Arab Spring" unexpectedly broke out late last year, Natan Sharansky waxed optimistic. Writing in the Washington Post in March, the former Soviet refusenik who ranks as Israel's best known pro-democracy activist argued that the grassroots revolts that unseated Tunisian strongman Zine el-Abedine Ben Ali and Egyptian dictator Hosni Mubarak marked the start of a democratic tsunami that could soon engulf the region. Regional conditions, he counseled, were ripe for just this sort of radical surgery.

These days, however, Israelis who share this hopeful outlook are exceedingly hard to find. A recent visit found policymakers and academics of all political stripes deeply apprehensive of the tectonic shifts that have taken place in their region this year. They have good reason to be. Israel's security environment, never favorable, has taken a dramatic turn for the worse.

Welcome to “The Hangover,” Cairo edition. The widespread grass-roots protests that broke out in Egypt this spring succeeded in accomplishing what many skeptics doubted they could: ousting long-serving strongman Hosni Mubarak and ending his 30-year authoritarian rule. But now, some four months on, Egypt’s revolution is obviously on the skids.

The problems start with Egypt’s economy. Under Mr. Mubarak, Egypt’s economic fortunes were comparatively rosy, with the national gross domestic product growing an average of nearly 6 percent annually over the past three years. Today, by contrast, they are anything but rosy. Since Mr. Mubarak’s ouster in February, the Egyptian stock exchange has lost nearly a quarter of its value, prompting its chairman, Mohamed Abdel Salam, to embark upon a frantic tour of Gulf monarchies in an effort to drum up Arab investment. Tourism, the lifeblood of the Egyptian economy, likewise has plummeted, falling an estimated 60 percent over 2010 levels and costing the country more than a half-billion dollars in revenue to date in the process. Nor is a reprieve in sight. According to observers, it could take a decade for Egypt’s tourism industry to rebound fully - if, indeed, it rebounds at all. The prognosis is grim: As a recent analysis in the Asia Times put it, “Egypt’s economy is in free-fall.”

Perhaps the most striking thing about the recent death of Osama bin Laden at the hands of American commandos is the reaction it has elicited throughout the Middle East. That is because, while most regional governments have welcomed news of the al Qaeda chief’s demise, not everyone is embracing the post-bin Laden era.

The Taliban, for example, have been quick to lionize the terror mastermind and threaten retribution against the coalition and its allies. “Pakistani rulers, President Zardari and the army will be our first targets,” a spokesman for the movement’s Pakistani branch has warned. “America will be our second target.”

Romania comes aboard...; ...as Russia chafes; Spurned by Russia, Iran looks inward; Israel doubles down on Iron Dome

Russian missiles for Syria (and Hezbollah?); Iron Dome comes online; S-300 reinforces Russian claims to the Kurils; U.S. missile shield sets sail; Israeli defenses against the DPRK

U.S. recognition of a Palestinian state is one of those tempting silver bullets that upon close examination would produce the opposite of its promised result. Rather than promoting peace, it would likely ignite conflict both within Palestinian society and between Israel and the Palestinians.

Never mind that such recognition would undermine the very process of negotiations between Israel and the Palestinian Authority to which the two parties agreed, which the United States and the global community have endorsed, and which is supposed to produce a Palestine that lives in peace with its Jewish neighbor.

Never mind, too, that we have been here before with a unilateral Palestinian declaration of statehood followed by strong international recognition, followed not by peace but, instead, by more conflict.

In late 1988, the Palestine Liberation Organization adopted a resolution that declared an independent state of Palestine. PLO chairman Yasser Arafat declared himself the president of Palestine, and more than 100 nations have since recognized an independent Palestine over the years.

No state arose and no peace ensued because Israel and the Palestinians had not ironed out the details of mutual recognition, borders and other basic matters that are the sin qua non of real peace. Why anyone would expect a different result this time with the parties wrangling over the same issues defies explanation.

NATO draws closer to Russia...; ...while Moscow keeps the heat on Washington; Defending Israel's naval assets; More U.S.-Israeli cooperation; For Iran, necessity is the mother of invention

Israel and Lebanon clash at the border; Arming the Saudis; Terror title shifts to South Asia; IMU leader Yuldashev dead

Iron Dome ready in November; Saudi legal reform takes a step forward; Iran's hand in Iraq highlighted by U.S. general; France "at war" with AQIM; Turkey gives boost to Azeri enclave

The makings of a Gulf strategic umbrella; Secret arms depots in Syria; AQI, on its heels; A bond between the Brotherhood and ElBaradei; Saudi Militants refuse rehabilitation