Israel is used to ensure continued divide and destabilization to keep the Middle East at perpetual war, making resource extraction cheaper and preventing the formation of a unified Arab block, that would have more people than the EU, be economically en par but strategically much better situated.
Note that this aspect is not exclusive to the US or EU. Russia is also quite happy with keeping the Middle East in this state. For China it remains to be seen, if they want a stable Middle East for the Belts and Roads, or if they arrange with the way it is currently.