The events in Jerusalem and Gaza have shown that Israel cannot turn to the Sunni Arab states without addressing the Palestinian problem as it could turn into a multi-arena conflagration.
Israel must reverse its priorities in the Palestinian arena policy it has adopted. It must take steps to weaken and contain Hamas without compromising on improving the humanitarian conditions in the Gaza Strip, as it is in Israel's best interest. At the same time, it should drastically alter its approach toward the Palestinian Authority, which represents the political alternative to this conflict resolution, and must be strengthened by all means. Meanwhile, in Jerusalem, Jordan's role in preserving and deepening the status quo should also be strengthened.
In its relations with the United States, Israel would do well to shift from loud, oppositional diplomacy with the Biden administration – which negatively reflects on its overall relations with the United States – to quiet, intimate dialogue based on the two countries' shared view that Iran must not be allowed to have nuclear weapons, while relying on the effective collaboration channels between the two countries in areas such as intelligence, defense, and operations.
As part of this shift, Israel should reintroduce the two-state solution into its discourse in close coordination with the U.S. administration and Arab states, and discontinue its "creeping annexation". Such steps will strengthen the Palestinian Authority as a governing system. Moreover, Israel must strive to build the PA as an alternative to Hamas' rule in Gaza in the long range; otherwise, the only alternative in the Gaza Strip will remain Israel itself.
The events in Gaza have proven that dependence upon Qatari funds is not a stable solution, and it is best to pursue 'sponsors' who will be able to utilize the financial assistance to restrain Hamas and bolster the Palestinian Authority. Either way, a more stringent oversight mechanism should be put in place (with regional and international participation) to ensure that assistance to projects and dual-use materials entering Gaza will not be diverted to be used for Hamas' military force buildup.
Within Israel's borders, Arab society's exacerbating issues form a strategic challenge and ticking time bomb, posing a threat to Israel's very existence as a law-abiding civilized state. The Israeli government should implement uncompromising enforcement to bring back order (intelligence, arrests, legal action, deterring punishments) while immediately implementing and expanding the national plans and budgets for the Arab society. At the heart of this effort, it must eradicate crime, encourage local leaderships and support them, as well as accelerate integration processes with Jewish society and state institutions.