Why it matters: While U.S. officials say there has been no policy change, the fact the State Department is even considering such options signals a shift in thinking within the Biden administration on possible Palestinian statehood recognition, which is highly sensitive both internationally and domestically.

• For decades, U.S. policy has been to oppose the recognition of Palestine as a state both bilaterally and in UN institutions and to stress Palestinian statehood should only be  achieved through direct negotiations between Israel and the Palestinian Authority.

Yes but: Efforts to find a diplomatic way out of the war in Gaza has opened the door for rethinking a lot of old U.S. paradigms and policies, a senior U.S. official said.