The rise of the Likud as Israel’s first political party also meant the rise of the controversial Ariel Sharon. Passed over as commander in chief of the Israel Defence Forces, he became Defence Minister under Begin.

The Israeli invasion of Lebanon in 1982 divided Israel with large demonstrations and protests.The siege of Beirut and the subsequent massacres in Palestinian refugee camps by Lebanese Christian forces brought demands for Sharon’s dismissal through his conduct of the invasion. Sharon was isolated in cabinet, found guilty by the Kahan Commission and moved aside as a minister. The PLO however moved out of Lebanon forced to relocate to Tunis and other locations.

Begin resigned in 1983 and was succeeded by Yitzhak Shamir, a veteran leader of Lehi (’the Stern Gang’).

There were numerous attacks by different Palestinian groups on civilian targets. Following the 1979 Islamic revolution, Iran now strongly supported the Palestinian cause. In 1981, Israel bombed the Osirak nuclear reactor near Baghdad to prevent Saddam Hussein gaining the possibility of manufacturing nuclear weapons.

In 1988, King Hussein relinquished any responsibility for the West Bank, leaving the Palestinians responsible for their own affairs. The PLO made the first tentative steps towards a two state solution - albeit using ambiguous language.

A non-lethal uprising - an Intifada - by the Palestinians took place at the end of 1987. It gave rise to an enhanced cooperation between the Israeli and Palestinian peace camps.