Israels support of Hamas is a pretty good starting point. That one pretty clearly shows, how the Israeli government continues that situation.

The other one is looking at the situation from an Israeli perspective. Iran is the most open anti Israel country right now. A lot of other countries in the region, do not like Iran either and are somewhat willing to work together with Israel. That is Saudi Arabia for example. The issue is that the situation in Palestine is preventing that alliance from forming. So a deal with the Palestinians gives Israel greater security in the region as well. If done right that would only mean the northern border to Lebanon and Syria is challenged.