Skip to content
Search

Latest Stories

What We're Watching

Could Saudi Arabia get Israel to embrace a Palestinian state?

Israeli Prime Minister Benjamin Netanyahu attends the weekly cabinet meeting at the the Kirya military base in Tel Aviv, Israel, 31 December 2023.

Israeli Prime Minister Benjamin Netanyahu attends the weekly cabinet meeting at the the Kirya military base in Tel Aviv, Israel, 31 December 2023.

ABIR SULTAN/REUTERS
Make us preferred on Google

Amid growing global calls for a cease-fire in Gaza and rapidly escalating tensions across the Middle East, Arab states and the US are increasingly looking towards a longer-term solution that revives the idea of a Saudi-Israel normalization deal that includes the outlines of a Palestinian state.


At least one Israeli leader isn’t completely opposed to the idea: Israeli President Isaac Herzog on Thursday said that Saudi Arabia formally recognizing Israel would be “key to the ability to exit from the war into a new horizon.”

This came just two days after Saudi Foreign Minister Prince Faisal bin Farhan said the kingdom would “certainly” be willing to recognize Israel – though only as part of an agreement involving the creation of “a Palestinian state.”

The idea isn’t totally new. Prior to Oct. 7, there was a Saudi-Israel normalization deal in the works too, but Palestinian statehood was not viewed as Riyadh’s top priority at the time.

So just how realistic is this revitalized effort?

“It’s good politics in the US,” and the White House believes “it’s the best way to induce Israel to be more reasonable on the Palestinian issue,” says Hussein Ibish, a senior resident scholar at the Arab Gulf States Institute.

Still there are two big problems.

First, the ongoing war in Gaza. The Saudi ambassador to the US on Thursday said that normalization won't be possible until there's a cease-fire.

Second? An obstacle named Bibi. Israeli Prime Minister Benjamin Netanyahu on Thursday said he has told the US he categorically rejects any calls for a post-war Palestinian state, stating that Israel needs “security control” over all territory west of the Jordan River, which includes the West Bank and Gaza. That’s Bibi’s version of “river to the sea.”

With factions of his hard-right government opposed to making concessions to Palestinians and “no consensus” on governance in post-war Gaza, it’s going to be “difficult to get the necessary pieces aligned over the short-term” for any normalization deals, says Sofia Meranto, a Middle East analyst at Eurasia Group.

Putting Bibi in a corner? But as Washington and Arab countries continue to champion this approach, it could further isolate Bibi at a time when he’s extraordinarily unpopular in Israel.

Netanyahu is standing in the way of an important diplomatic initiative that could strengthen the Jewish State and stability in the region, says Ibish, and the Biden administration, which wants Bibi gone “as soon as possible,” is making the point to the rest of Israel that this could be possible without “obstruction” from the Israeli leader and “his extremist friends.”

Whether this will bear fruit remains to be seen, but it’s a space we’ll be keeping a close eye on in the days ahead.

More For You

UK Prime Minister Keir Starmer stands with his wife Victoria Starmer after announcing the timeline for his resignation, outside 10 Downing Street, in London, United Kingdom, on June 22, 2026.

UK Prime Minister Keir Starmer stands with his wife Victoria Starmer after announcing the timeline for his resignation, following Andy Burnham's decisive victory last week in the Makerfield by-election, outside 10 Downing Street, in London, United Kingdom, on June 22, 2026.

REUTERS/Jack Taylor
Starmer resigns, and the UK prepares to turn leftAfter less than two years in office, centrist Prime Minister Keir Starmer announced on Monday morning that he would resign as Labour Party leader. “I have spoken to His Majesty the King this morning to inform him of my decision,” said a tearful Starmer outside Downing Street, who will exit office by [...]
Iranian President Masoud Pezeshkian displays a memorandum of understanding after signing it in Tehran, Iran, on June 18, 2026.

Iranian President Masoud Pezeshkian displays a memorandum of understanding after signing it in Tehran, Iran, on June 18, 2026, after the document was signed by US President Donald Trump.

Iranian Presidency via ZUMA Press
What does the US-Iran deal mean for Tehran? The interim agreement to end the war, signed by both sides on Wednesday, appears to tilt toward Iran: it lifts the US naval blockade of Iranian ports, grants sanction waivers for Iranian oil products – meaning Tehran no longer has to sell oil at a discount – and gives the Islamic Republic access to [...]
People walking along the Dubai Creek Harbour

People walk along Dubai Creek Harbour, amid the U.S.-Israel conflict with Iran, in Dubai, United Arab Emirates, March 6, 2026.

REUTERS/Amr Alfiky/File Photo
Will the Gulf pay for its own protection from Iran? Iran could reportedly receive up to $300 billion in a reconstruction fund for its battered economy as part of its interim peace deal with the US, which is expected to be formally signed in Switzerland on Friday. While the structure and management of the potential fund are unclear, US President [...]
Israeli PM Benjamin Netanyahu at a news conference

Israeli Prime Minister Benjamin Netanyahu holds a news conference, following a US-Iran deal, in Jerusalem, June 15, 2026.

REUTERS/Ronen Zvulun/Pool
US-Iran deal could spell disaster for NetanyahuIsraeli Prime Minister Benjamin Netanyahu was already struggling in polls ahead of elections later this year, but his situation might get worse after Washington and Tehran agreed to a deal (pending its signing on Friday). Why the issue with ending the war? Israel ploughed resources into the war, its [...]