Despite a long-term peace process and the general reconciliation of Israel with Egypt and Jordan, Israelis and Palestinians have failed to reach a final peace agreement. The key issues are: mutual recognition, borders, security, water rights, control of Jerusalem, Israeli settlements, Palestinian freedom of movement, and Palestinian right of return.
The Palestinian Arabs have been given a very bad situation: the British Mandate created Israel out of some of their lands, conflict drove them from their lands, they were prevented from integrating into the neighboring countries, and they have been stuck in a powerless refugee classification for decades. The Israelis have faced numerous challenges and have been forced into a very tough situation: from the creation of Israel, the Israelis have faced hostile neighbors, near-perpetual terrorism, a radical right-wing political party, and international censure for events that they can do little to change.
As immigration of Jews to Palestine occurred, the demographics of the region were greatly changed. This change inevitably led to conflict. Five major waves of Jewish immigration into Palestine occurred: 1882-1903, 1904-1914, 1919-1923, 1924-1928, and 1929-1939. Economic factors directly caused of the Israel/Palestine conflict. As Zionists began to settle into Palestinian territory, they began to buy land from Arab absentee land owners. Slowly, the most fertile lands in the northern valleys and in the coastal plains came into the possession of the Jewish.
The Oslo Accords are a set of agreements between the government of Israel and the Palestine Liberation Organization (PLO): the Oslo I Accord, signed in Washington, D.C., in 1993 and the Oslo II Accord, signed in Taba in 1995. The Oslo Accords marked the start of the Oslo process, a peace process that is aimed at achieving a peace-treaty based on the United Nations Security Council Resolution 242 and 338, and to fulfill the "right of the Palestinian people to self-determination."The Oslo Accords created the Palestinian Authority, whose functions are the limited self-governance over parts of the West Bank and Gaza Strip. I don't believe that it was successful because the two sides have not come to peace yet there is still conflict.