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Prime Minister Rabin is slain by a Jewish extremist, jeopardizing the tentative progress toward peace.
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Benjamin Netanyahu is elected prime minister of Israel by a razor-thin margin.
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Israel and the PLO sign the Hebron Accord, which calls for the withdrawal of Israeli troops from Hebron. The move ends 30 years of occupation and divides control over the contentious town between Arabs and Israelis.
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At a summit at Wye Mills, Md, Netanyahu and Arafat sign the Wye River Memorandum that settles several important interim issues called for by the 1993 Oslo Accord. The Wye Accord, however, quickly begins to unravel.
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Labor Party leader Ehud Barak is elected prime minister and announces plans to pursue peace with the Palestinians, establish relations with Syria, and end the war in southern Lebanon with Hezbollah guerrillas.