After Yom Kippur War, Egypt, under Sadat, seemed willing to seek peace and US realised Arab states needed to be listened to after 1973 oil embargo
US Secretary of State Henry Kissinger engaged shuttle diplomacy to arrange disengagement treaties between Israel, Egypt and Syria and US President Jimmy Carter, elected 1977, declared his government would strive to solve Palestinian problem
PLO hinted they may accept a Palestinian “mini-state” in West Bank and Gaza, Arafat led more moderate PLO wing and spoke at UN of his desire for peace, both Israel and PLO extremists rejected this
1974: Saudi Arabia began selling oil to the US again, 1975: Suez Canal was reopened, 1977: Sadat and Israeli PM Menachem Begin started peace talks
1978Stalemate: Talks stalled, Sadat demanded recognition of Palestinians right to self-determination and Begin demanded Israel keep control of West Bank, so Carter flew them to Camp David
Camp David Agreements (1978): Both leaders went to Camp David for peace talks with US President Carter, Egypt let Israel use Suez and Straits of Tiran, Israel would withdraw from Sinai, No agreement on Jerusalem
Treaty of Washington1979: Formal Peace Treaty signed between Egypt and Israel, recognising borders and right to exist; showed progress was possible, but no agreement was possible over Palestinians
Israel felt more secure now, they neutralised biggest Arab military threat, US guaranteed it would meet Israel's oil needs for 15 years and replace lost air bases from withdrawing out of Sinai
Eygpt: Regain Sinai in 3 years (complete by April 1982), time to rebuild economy, $1.5bil US aid for 3 years, Egyptians pleased as they felt Sadat put Egypt’s need s first after all their sacrifices for Arabs
Islamists: Small minority who turned against Sadat for making peace with Zionist enemy and his hostility to Iran's Islamic government; Islamic extremists assassinated Sadat 1981
Globally applause for improvement of Arab-Israeli tensions, but Arab States saw it as selling out and a better deal could have been made (particularly Palestinians) by collective action; cut relations with Egypt, 20 years before they were re-accepted