Israel is politically in a terribly precarious situation; 70% of it's trade is with europe where it trades as if it was an EU member (all the benefits none of the rules). Not to mention the US blocking any UN action against it.
If the West ever decided it would rather trade with 200 million Arabs, rather than 9 million Israelis Israel would be stuffed.
It needs a meaningful peace with the Palestinians alot more than the other way around. And frankly needs to suck it up and start clearing settlements out of the Westbank ASAP.
An effective life sentence for cat murder.