Israel and the United Arab Emirates have struck an agreement to establish full diplomatic ties, making the latter the first Gulf Arab state and the third Arab nation to forge active bilateral ties with the former.
This comes as Israel has reportedly agreed to forgo for now the annexation of Palestinian lands in the occupied West Bank to focus on improving its ties with the rest of the Arab world.
The deal made on Thursday was brokered by Washington, with President Trump hailing the agreement.
He said it would lead to both parties signing a string of bilateral agreements on investment, tourism, security, and other areas.
"This is a truly historic moment. Not since the Israel Jordan-Peace Treaty was signed more than 25 years ago has so much progress been made towards peace in the Middle East. By uniting two of America's closest and most capable partners in the region something they said could not be done this deal is a significant step towards building a more peaceful, secure and prosperous Middle East."
Israel's Prime Minister described the deal as historic for the country.
"Well today we usher in a new era of peace between Israel and the Arab world We announced the establishment of a full and formal peace between Israel and the UAE includes the mutual opening of the embassies, direct flights, and many many other bilateral agreements."
The UAE's minister of state for foreign affairs said the deal was made to manage the threat of annexation of the Palestinian territories, adding that Israel has committed to stopping such a move, which Netanyahu proposed would happen after July this year.
Pundits say the deal could have been made considering the fact that the two share a common adversary of Iran as well as mutual regional security and commercial interests.
They also say the deal will likely be perceived as a significant diplomatic victory for President Trump as he seeks re-election in November.
Kim Hyo-sun, Arirang News.