Peace talks between Israel and the Palestinians were thrown into limbo on Sunday when the 10-month moratorium on Israeli settlements was not extended, making the possibility of derailment very real, some experts said.

Still, some experts said the deadline may not have been make-or-break, as there is still room for compromise between the two sides.

Indeed, Bloomberg news service reported on Monday that Palestinian President Mahmoud Abbas said he would confer with Arab leaders on Oct. 4 to "clear up our position," and some experts said that could indicate he is not ready to leave the talks just yet.

Abbas has said in the past that he would walk away from the talks if the moratorium was not extended. Israeli Prime Minister Benjamin Netanyahu reiterated that he would not extend the 10-month moratorium, but on Monday called on Abbas to continue with the peace talks.

As Israeli settlers on Sunday celebrated the end of the moratorium, U.S. diplomats scrambled to find a solution amenable to both sides.

Michele Dunne, senior associate at the Carnegie Endowment for International Peace, said that while the possibility remains that the talks could stall, a number of compromises could be still be worked out.

The number of new housing units could be curtailed, or the Israelis could promise to build them in areas likely to be absorbed into Israel after a final agreement, she said.

Still, the issue has put Abbas in a difficult position, she said.

The Palestinian president was initially reluctant to join the talks, saying that only a full freeze could prompt him to participate. When that didn't happen, he agreed to talks if the Israelis agreed to a partial freeze on construction -- or the so-called moratorium -- but only after much arm twisting by the United States.

"Now he doesn't even have that. It's really hard for him to agree to remain in the talks," Dunne said.

"It's going to be very difficult for Abbas to explain to his own people, as well as to other Arab states, why he's continuing in talks if he's not getting anything," she said.

David Pollock, senior fellow at the Washington Institute for Near East Policy, said it remains unclear whether Abbas will pull out, although it is unlikely to happen immediately.

And the fact that he did not do so on Sunday implies that he may be looking for a compromise or a way to finesse the issue, Pollock said.