The problem of Israel and it's Muslim neighbors can only be understood from a biblical perspective. And a biblical perspective is the one impossibility for the world of nations to take in its search for solutions. There is no solution apart from a biblical basis. And there is no nation willing to look at it from a biblical base - including Israel herself, when you get right down to it. The positions Israel would be forced to take, with the Bible as the base, are unthinkable.
According to scripture, there has only ever been one nation under God, and that nation is Israel. We would need to start with Noah and his three sons, the only family that survived the flood. Shem was the only son that worshipped God, and the road to God for Ham or Japheth was "to dwell in the tents of Shem" in order to secure spiritual blessing.
Nine generations later Abraham appears in Shem's lineage, and then Isaac, Jacob and his sons ... the twelve tribes. God's covenants are with these people alone in the Old Testament.
Neither Abraham's seed, Ishmael; nor Isaac's son, Esau; were included in the nation of Israel, but were "to be reckoned among the nations." Israel, was not to be reckoned among the nations. God was "the Lord God, the God of Israel." The gods of the other nations were idols. The only way that any Gentile nation could access God would be through Israel, God's people.
In the New Testament, there was still only one true God, who opened up the way to individuals through the New Covenant established through the blood of Jesus Christ, the final, once-for-all sacrifice. So, even Christians today received their salvation through the people of Israel and their Jewish messiah, on an individual and personal basis.
There remains only one nation still - the nation of Israel - which is a nation under Almighty God, even though it still remains in a state of unbelief and disobedience. All other nations are under Satan's legal rule of the earth; that is his legal right at the present time. Israel is the only nation on earth that has a covenantal relationship with God.
And this is the heart of the problem: Israel, the only nation who is identified as belonging to the one true God. All the other nations know this, and they know that Israel has the covenantal right to rule all nations .. that all other nations will be ruled by, and blessed through, Israel.
Satan is well aware of Israel's special status, and he has been, and remains, determined to destroy her, so that he can rule the entire earth. He knows that if Israel can exercise her God-given status on earth, with God as her head, Satan will be forced to give up his sceptre. And, thus is being fulfilled Psalm 83:4: "Come, and let us cut them off as being a nation; that the name of Israel be no more a remembrance." This is what the world - ruled by Satan - is attempting to do.
There is even more. The world knew the prophecies that Israel would be punished - and has been - for her disobedience. But now she has returned, and without going into all the details, she has returned while still in a state of disobedience and unbelief. Israel herself can never exercise her covenant relationship while in this state, and this complicates matters even more, because the restoration of the Jewish people can only occur as a result of her repentance; and that can only happen at the end of the 7-year tribulation when Jesus returns and is recognized (finally) by the Jews as their messiah.
This is why the situation is totally uncontrollable today. The basics as laid out above will never be faced and recognized by the nations of the world, nor by Israel. There can be no solution whatever to the Middle East problem without divine intervention. The problem is a spiritual one, and is attempting to be solved through secular means, since all involved refuse to repent and recognize God as sovereign.
The Lord himself will intervene to solve this problem, on his time schedule.