With a pending Gaza ceasefire and Donald Trump returning as US president, Saudi Arabia’s de facto leader must now decide whether to recognise Israel before a Palestinian state is created.

Secretary of State Antony Blinken on Tuesday said normalization between Israel and Saudi Arabia is ready to go, but requires following through on ending the war between Israel and Hamas in the Gaza Strip and a commitment to a pathway to a Palestinian state.

Shafrir notes that Israel's risk premium is still at high levels: "Israel's risk premium has already fallen sharply since the beginning of November (against expectations at the time for an end to the war in Lebanon), but it is still high - on the international market, Israel's bonds are still traded similarly to companies with a BBB minus rating."

Israel’s national security minister Ben Gvir claimed he has repeatedly foiled a hostage and ceasefire deal with Hamas over the past year as he threatened to quit the Benjamin Netanyahu cabinet over a fresh deal being brokered by the US.

Hamas has accepted a draft agreement for a ceasefire in the Gaza Strip whilst Israel insists details are still being finalised

Israeli Prime Minister Benjamin Netanyahu is tapping the brakes on claims of success by President Biden, President-elect Trump and partners in the Middle East that a ceasefire and hostage release

Gulf countries, including Qatar, the UAE, and Saudi Arabia, have strongly condemned an Israeli map published on official social media accounts that asserts "historical territorial rights" over Palestine, Jordan, Lebanon, and Syria.

The Abraham Accords remain a cornerstone of President-elect Donald Trump and the Republican Party's agenda. During the 79th session of the UN General Assembly, Israeli Prime Minister Benjamin Netanyah

With a pending Gaza ceasefire and Donald Trump returning as US president, Saudi Arabia's de facto leader must now decide whether to recognise Israel before a Palestinian state is created.

With an Israel-Hamas cease-fire set to begin, the shock waves from their war have reshaped the region in unexpected ways.

The deal happened under the Biden administration, but pressure from Trump may have helped secure it, say analysts