Jerusalem—I visit Israel at least once a year, so I have an opportunity to observe changes in the country's concerns. Never before have I sensed such a mood of foreboding, which has been triggered by two issues above all—the looming impasse in relations with the United States and a possible military confrontation with Iran. In response to American pressure that began shortly after President Obama took office, the Netanyahu government agree last November to a temporary and partial freeze on construction in East Jerusalem and the West Bank, which averted an immediate crisis. The freeze expires in September, however, and...