The US administration is considering a new deal to persuade Israel to recognise Palestinian statehood in exchange for normalising ties with Saudi Arabia, as officials work to orchestrate a post-war plan for Israel and the Palestinians. The deal would see Israel accept Palestinian statehood in exchange for a fruitful relationship with Saudi Arabia, one of the region’s most powerful nations and rival to Shia-majority Iran. According to a report in American newspaper The Wall Street Journal, the White House is enticing Riyadh into an agreement with a three-pronged deal that includes a formal defe…