A Jewish extremist assassinated Rabin (the PM of Israel at the time), perhaps that has got something to do with it too, then Hamas who also didn't want peace compounded this with more violence:After that, the Israelis just accepted a two state solution and peace were not going to happen and moved on.
Milestones in the History of U.S. Foreign Relations - Office of the Historian
history.state.gov 3.0 shell
history.state.gov
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