President Joe Biden is exploring the possibility of a big deal in which Saudi Arabia normalizes relations with Israel, Israel reopens talks with Palestinians, and the U.S. signs a mutual defense pact with Saudi Arabia. New York Times columnist Thomas Friedman has described the deal as “a game changer for the Middle East, bigger than the Camp David peace treaty between Egypt and Israel”—as long as tight restrictions on Israeli settlements are a condition. Certainly, the package is intriguing. The fact that Biden sent National Security Adviser Jake Sullivan to talk it over with Saudi Crown Prince Mohammed bin Salman,...