No, the US should support the only democratic country in the area.
But Egypt is now a demoncracy (sic).
Peace for Israel does not include an independent Palestinian state. Peace for the Palestinians does not include a state of Israel at all. Given that, it is pointless to believe that the United States can broker any kind of permanent agreement between the two. So the U.S. should stop trying. It isn't going to work. We can't pressure the Palestinians and we shouldn't pressure only the Israelies. We should stay out of it. Israel will do what it feels it needs to do to protect itself. The Palestinians will do whatever the hell they want to do regardless of what we say. We can do no good there, only bad.