On May 14, 1948, the State of Israel declared its independence and was immediately engaged in a war with all of its neighbors. Armed conflict has marked every decade of Israel's existence. Despite its unstable regional environment, Israel has developed a vibrant parliamentary democracy, albeit with relatively fragile governments. Israel's foreign policy is focused largely on its region, Europe, and the United States. The government views Iran as an existential threat due to its nuclear ambitions and support for anti-Israel terrorists. Israel negotiated a series of agreements with the Palestinians in the 1990s, but the Oslo peace process ended in 2000, after the beginning of the intifadah (uprising). Israeli and Palestinian officials resumed contacts after the November 2004 death of Yasir Arafat. Both sides accepted but have not implemented the "Roadmap," the international framework for achieving a two-state solution. Israel unilaterally disengaged from Gaza in summer 2005 and is constructing a security barrier to separate from the Palestinians. The victory of the Hamas terrorist group in the January 2006 Palestinian parliamentary elections has complicated Israeli-Palestinian relations and led Israeli officials to propose future unilateral steps in the West Bank. Israel concluded a peace treaty with Egypt in 1979 and with Jordan in 1994, but never reached accords with Syria and Lebanon. It unilaterally withdrew from southern Lebanon in 2000. European countries collectively are Israel's second largest trading partner, and the EU participates in the peace process. Since 1948, the United States and Israel have developed a close friendship based on common democratic values, religious affinities, and security interests. U.S.-Israeli bilateral relations are multidimensional. The United States is the principle proponent of the Arab-Israeli peace process, but U.S. and Israeli views differ on various peace process issues, such as the fate of the Golan Heights, Jerusalem, and Israeli settlements. The United States and Israel concluded a free-trade agreement in 1985, and the United States is Israel's largest trading partner. Since 1976, Israel has been the largest recipient of U.S. foreign aid. The two countries have very close security relations. Current issues in U.S.-Israeli relations include Israel's military sales to China, inadequate Israeli protection of U.S. intellectual property,and espionage-related cases.

"Updated May 18, 2006."