If ever there was a symbol of shifting global priorities, it was the empty seats in the main hall of the Davos conference center during a panel discussion on Mideast peace. That hall usually fills to overflowing when a big name speaker is scheduled to give an address. This time, even the presence of former British Prime Minister Tony Blair wasn't enough to draw the usual capacity crowd.

As for the discussion: a mixture of boilerplate interspersed with (Israeli) optimism and (Palestinian) pessimism. In spite of recent developments in Gaza, Israeli President Shimon Peres was upbeat about the fact that both sides recognized that war was not an option. "The agenda is full, problems are still existing, but hope has today a greater chance than ever before," he said.

Salam Fayyad, prime minister of the Palestinian National Authority, said he could not share the optimism given the "absolutely disastrous situation currently prevailing in the Gaza Strip." "It is currently moving from bad to worse," he said. Fayyad's call on Israel to ease the pressure was met with a gentle rebuke from Tzipi Livni, who said that Israel needed some time to do things "the right way." "We hope to do it this year," she said.

Livni's main message: that the threat from Iran was greater than the threat from Hamas--and that the powerbrokers in Davos should be use their influence to shape policy on Tehran. "Iran is a global threat and Iran can be stopped by you," she said.