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Significance

The agreement provides US President Donald Trump a signature foreign policy achievement ahead of US elections in November, while giving Abu Dhabi an opportunity to cement ties with Washington in case of a change of president. It also constitutes a major diplomatic victory for Israeli Prime Minister Binyamin Netanyahu, amid rising domestic woes.

Impacts

Some other Arab states such as Bahrain or Oman might follow the UAE’s lead.

Saudi Arabia is likely to be more cautious, especially as it is preoccupied with internal succession dynamics.

European countries will call for the suspension of annexation to be made permanent and Israel to return to talks with the Palestinians.

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