Under Mikhail Gorbachev, the mass emigration of Soviet Jews began. It accelerated with the collapse of the USSR in 1991.

In 1993, Rabin and Arafat signed the Oslo Accords in a Washington ceremony despite opposition from within both sides. Arafat returned to Gaza while Hussein signed a peace treaty with Israel in 1994.

In 1995, Rabin was assassinated by a member of the far Right, following a peace rally and Shimon Peres succeeded him. However Peres was unexpectedly defeated by the new leader of the Likud, Benjamin Netanyahu in the 1996 election.

The election of Netanyahu and the rise of Palestinian Islamism and suicide bombing effectively stalled any progress towards a solution. Palestinian groups such as Hamas and Islamic Jihad did not recognise Israel and opposed the Oslo Accords.

The Hebron Accords in 1997 divided streets in Hebron between Palestinian Arabs and Jewish settlers. The Wye Plantation Accord between Netanyahu and Arafat promised a return of 13% of the West Bank to the Palestinians.

Discord in the Likud about the agreement led to an election in 1999 in which Netanyahu was defeated. Labour’s Ehud Barak became prime minister and Sharon became leader of the Likud.