Two-state solution - an agreement that would create a state for the Palestinians in the West Bank and Gaza Strip alongside Israel. WHAT ARE THE MAIN ISRAELI-PALESTINIAN ISSUES?Ī two-state solution, Israeli settlements, the status of Jerusalem, and refugees are at the core of the dispute. The latest war is diplomatically awkward for Riyadh as well as for other Arab states, including some Gulf Arab states next to Saudi Arabia, that have signed peace deals with Israel. President Joe Biden has focused on trying to secure a "grand bargain" in the Middle East that includes normalisation of relations between Israel and Saudi Arabia, custodian of Islam's two holiest shrines. policy by refusing to endorse the two-state solution - the peace formula that envisages a Palestinian state established in territory that Israel captured in 1967. President Donald Trump since it reversed decades of U.S. Palestinians later boycotted dealings with the administration of U.S. Peace efforts have been stalled since 2014, when talks failed between Israelis and Palestinians in Washington. In 2002, an Arab plan offered Israel normal ties with all Arab countries in return for a full withdrawal from the lands it took in the 1967 Middle East war, creation of a Palestinian state and a "just solution" for Palestinian refugees. The Camp David summit of 2000 saw President Bill Clinton, Israeli Prime Minister Ehud Barak and Arafat fail to reach a final peace deal. In 1994, Israel signed a peace treaty with Jordan. In 1993, Israeli Prime Minister Yitzhak Rabin and Arafat shook hands on the Oslo Accords on limited Palestinian autonomy. In 1979, Egypt and Israel signed a peace treaty, ending 30 years of hostility.
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