In peace negotiations with Egypt, Jordan (once called Transjordan) Syria and Lebanon, Israel established its borders. Jordan retained control of the West Bank, and the city of Jerusalem was divided between both Jordan and Israel. Egypt occupied the Gaza Strip.

In 1959, Egyptian army soldier Yasser Arafat helped found the Palestine National Liberation Movement, who sought to regain territory for the Palestinian people. Ten years later Arafat was named chairman of the Palestine Liberation Organization, an umbrella group for Palestinian factions engaging in guerilla warfare against Israel