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Israel has grown in size twice since it declared independence in 1948. The first time it grew was as a result of the armistices that ended the Arab-Israeli War of 1948-9. The borders expanded from the UN Partition Plan to the places where the soldiers stood on the day of the armistice. These have become the de jure borders of Israel to this day (according to the International Community). Israel expanded once more in 1967 when it conquered six neighboring territories (Sinai Peninsula, Gaza Strip, East Jerusalem, West Bank, Eastern border of the Sea of Galilee, and the Golan Heights) from its belligerent Arab neighbors in a preemptive war. However, according to UNSC Resolution 242, Israel could only hold onto those territories pending a final peace treaty.

In 1979, Israel devolved the Sinai Peninsula to Egypt for peace. In 1993, Israel devolved part of the Gaza Strip to the PLO for peace and devolved the remainder of it to the PA (the successor to the PLO) in 2005. In 1994, Israel devolved parts of the West Bank to the PLO in accordance with a peace treaty with Jordan. Contrary to what is assumed in the question, Israel has actually been shrinking in terms of what areas it controls since 1967.

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