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There are a vast number of effects of the Israeli-Palestinian Conflict. The list below is not exhaustive.
Israel
- The existence of the State of Israel is a direct result of the Arab-Israeli Conflict
- The Israeli War Budget and Compulsory Military Service
- The Expansion of Israel from the 1947 UN Resolution Boundaries to the 1949 Armistice boundaries to the the 1967 Six-Day War boundaries to the 1973 Yom Kippur War boundaries.
- The Contraction of Israel in 1982 (giving up Sinai)
- The Israeli Occupation of Southern Lebanon (1981-2000) and the two Israeli engagements in Lebanon.
- The Israeli Alliance with Iran (1948-1979), Turkey (1949-2010?), Egypt (1979-Present), Jordan (1994-Present), and the United States and Western Countries.
- The Lack of major Israeli-Arab trade even though they are neighbors.
- The Annexation of East Jerusalem, the Golan Heights, and the city of Ghajar.
- The Military Occupation of the West Bank and Blockade of Gaza
- The Relinquishing of Gaza and portions of the the West Bank to the Palestinian Authority
Palestine
- The lack of existence of the State of Palestine as a fully sovereign and internationally recognized state is a direct result of the Arab-Israeli Conflict (both by Israel and by Jordan and Egypt)
- The Palestinian Exodus from the former British Mandate of Palestine
- The Palestinian Refugee Displacement and Diaspora
- The Arab-Palestinian Conflict (typically refugee camp disputes that became massacres)
- Jordanian and Egyptian Annexation of Palestinian territories (1949-1967) and denial of Palestinian self-rule up to the Israeli conquest of those regions.
- The formation of the PLO and the numerous police actions brought against it by Arab States
- Around 18% of Israelis being ethnically Palestinian.
- The first Intifada and the Israeli Recriminations
- The Relinquishing of Gaza and portions of the the West Bank to the Palestinian Authority
- The second Intifada and the Israeli Recriminations
- The Palestinian Civil War of 2007 that separated Gaza (under the control of democratically-elected Hamas) from the provisional West Bank territories (under the control of Western-supported Fatah)
- Constant belligerence between Gaza and Israel since the Palestinian Civil War and Operation Cast Lead
- The pervasive loss of land due to Israeli Settlements in the West Bank and formerly (they were removed by Israel in 2005) in the Gaza Strip.
Egypt
- The Rise of Arab Socialism and Nasserism were indirectly a result of the Arab-Israeli Conflict (Nasser provided a new way to deal with Middle East policy for Egypt)
- The loss and recovery of Sinai from Israel twice (1956-1957, 1967-1982)
- Normalization of ties with Israel (1979) after bitter defeats or stalemates in previous wars
- Military Alliance with Israel in the aftermath of the Peace Treaty and especially after the Palestinian Civil War
- Palestinian Refugee Camps in Egypt
- Assassination of President Anwar Sadat and one of several reasons for popular dissatisfaction with President Hosni Mubarak (the economy was a bigger issue)
Jordan
- Massive influx of Palestinians in the aftermath of the Arab-Israeli War of 1948-9
- Gave citizenship to many Palestinian refugees, making 60% of Jordanian citizens ethnic Palestinians
- Lost the West Bank to Israel in 1967
- Suppressed the Black September Palestinian Uprising in 1970
- Made peace with Israel in light of the Oslo Accords of 1993 conditioned on further negotiations with the Palestinians and dropped its claim to the West Bank
- Fruitful trade and peace with Israel (1994-Present)
- Assisted negotiations between Israel and Fatah
Syria
- Massive influx of Palestinians in the aftermath of the Arab-Israeli War of 1948-9
- Loss of the Golan Heights in 1967 and the Syrian internal displacement (Syrians fleeing the Golan to the remainder of Syria)
- The establishment of the UNDOF demilitarized zone in 1973
- The tragedy of the Syrian Druze (some are in Israeli-occupied territory and some are in Syria, but they cannot travel)
- Headquarters of Hamas and Hezbollah in Damascus
- No diplomatic relations between Syria and Israel
Lebanon
- Massive influx of Palestinians in the aftermath of the Arab-Israeli War of 1948-9
- Numerous conflicts and massacres between Lebanese and Palestinians in Lebanon
- Israeli, PLO, and Syrian participation in the Lebanese Civil War
- Israeli Jewish and Lebanese Christian Alliances and the assassination of Gemayel
- Israeli and Syrian occupation of Lebanon from 1982 until 2000 and 2007 respectively
- 2006 War between Israel and Hezbollah destroyed South Lebanon
- No diplomatic relations between Lebanon and Israel and no person with an Israeli passport stamp is allowed in Lebanon
Turkey
- Allied with Israel as early as 1949 against the Arab States
- Placed Turkey in an interesting position as one of the few Muslim-majority countries allied with Israel
- The Arab-Israeli Conflict causes much turmoil and controversy in Turkey
- The Mavi Marmara Incident which cooled Israeli-Turkish relations
Iran
- Strategic anti-Arab Israeli-Iranian Alliance (1948-1979) which resulted in large petroleum commerce between Iran and Israel
- The resentment of the Iranian population towards Israel on account of the war and the above-mentioned alliance being connected to the Shah
- Since 1979, an attempt by Iran to use the Arab-Israeli Conflict to create alliances with other Arab states and spawn several militant organizations.
- Iranian-Syrian Shi'a Alliance (1979-Present)
- Iranian support and backing of Hezbollah (1980s to Present)
- Iranian desire for nuclear weapons to counter Israel's arsenal and all of the sanctions and international ostracism that comes from that desire
United States
- Alliance with Israel (1949-1967), Top-Level Alliance with Israel (1967-Present)
- The United States was able to use the Arab-Israeli Conflict to reposition itself as the strongest power in the Middle East after 1956 (removing the United Kingdom from that position)
- Military, diplomatic, technological, economic, and other trade increasing between Israel and the United States
- United States Aid to Egypt in the wake of the 1979 Egyptian-Israeli Peace treaty
- Aid to a number of Arab countries due to their poverty.
Soviet Union/Russia
- Initial Alliance with Israel (1948-1953) which was rescinded when it became clear that Israel would not be a Communist country
- Arms supplier to the Arab States and the dumping ground of many ex-Russian military devices such as machineguns, missiles, tanks, and fighter planes.
- Soviet/Russian attempts to prevent Western intervention in the Middle East
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