Both sides came to understand that the problems could not be solved with arms and that new channels had to be found, especially a peace process which would eventually lead to a political solution to the conflict.
Over the years the nature of the peace process underwent changes according to circumstances and the interests of the parties involved. When Israel and Egypt signed the Camp David Accords they forged the framework for the Israeli-Palestinian peace process. Later there were the Oslo Accords. However, the peace process was accompanied by terrorist attacks carried out by its opponents, especially Hamas, which instigated a series of suicide bombing attacks during the first half of the 1990s and was the main force behind the Palestinian terrorist campaign known as the Al-Aqsa, or second intifada (2000-2005). Hamas was joined by Fatah and both participated in the mass-casualty suicide bomber terrorist campaign.
The transition to the peace process turned over a new leaf in the history of the Israeli-Palestinian conflict. The PLO and Israel recognized one another (although the PLO and the Palestinians refuse to recognize Israel as a Jewish state and the homeland of the Jewish People), Israel withdrew from many of the territories and transferred them to the Palestinian Authority, which used the peace process to found its control of Judea, Samaria and the Gaza Strip (until Hamas' putsch in June 2007, when it forcibly took control of the Gaza Strip). In the final analysis the peace process is meant to lead to a final status agreement and the establishment of an independent Palestinian state coexisting with the State of Israel.
There are currently six issues at the core of the peace process: the borders, security, the Palestinian refugees, control of Jerusalem, dividing water resources and the Israeli settlements in Judea and Samaria. The Palestinian Authority is currently waging a political campaign against Israel (as opposed to the peace process) accompanied by what it refers to as "popular resistance."
Some of the Palestinians (represented by Hamas) still refuse to accept the existence of the State of Israel and reject any and all attempts to solve the conflict through the peace process. They call for the establishment of a Palestinian state on all the territory of the State of Israel, to be achieved by an armed campaign (jihad, usually called "resistance").