Bereft of bases from which PLO forces might attack the Jewish state and encouraged by the success of a popular uprising, the intifāḍah (Arabic: “shaking off”), that began in 1987 in the occupied territories, the PLO leadership developed a more flexible and conciliatory policy toward peace with Israel. On Nov. 15, 1988, the PLO proclaimed the “State of Palestine,” a kind of government-in-exile; and on April 2, 1989, the PNC elected ʿArafāt president of the new quasi-state. The PLO during this period also recognized United Nations Resolutions 242 and 338, thereby tacitly acknowledging Israel’s right to exist. It thus abandoned its long-standing goal of replacing Israel with a secular, democratic state in Palestine in favour of a policy accepting separate Israeli and Palestinian states, with the latter occupying the West Bank and the Gaza Strip.

ʿArafāt’s decision to support Iraq during the 1990–91 Persian Gulf War alienated the PLO’s key financial donors among the gulf oil states and contributed to a further softening of its position regarding peace with Israel. In April 1993 the PLO under ʿArafāt’s leadership entered secret negotiations with Israel on a possible peace settlement between the two sides. The first document in a set of Israel-PLO agreements—generally termed the Oslo Accords—was signed on Sept. 13, 1993, by ʿArafāt and the leaders of the Israeli government. The agreements called for mutual recognition between the two sides and set out conditions under which the West Bank and Gaza would be gradually handed over to the newly formed Palestinian Authority, of which ʿArafāt was to become the first president. This transfer was originally to have taken place over a five-year interim period in which Israel and the Palestinians were to have negotiated a permanent settlement. Despite some success, however, negotiations faltered sporadically throughout the 1990s and collapsed completely amid increasing violence—dubbed Al-Aqṣā intifāḍah—in late 2000. This second uprising had a distinctly religious character, and militant Islamic groups such as Ḥamās, which had come to the fore during the first intifāḍah, attracted an ever-larger following and threatened the PLO’s dominance within Palestinian society.

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