The major bones of contention in negotiations are:
• The status of Jerusalem. Israel regards the entire city as its capital. The Palestinians regard East Jerusalem as the capital of a future Palestinian state.
• Jewish settlements in the West Bank. The land is known as Judea and Samaria in Jewish history, and Israelis say they believe that territory is part of the Jewish state. The Palestinians say the West Bank is Palestinian land. They also say they've been mistreated in their own land for years by Israel's government, the military and settlers.
• Security. Israel has said it wants to be assured of the safety of its citizens from attacks by Palestinian militants in any peace agreement.
• The status of the Palestinians, who mostly departed Israel during two wars: one that led to the state's founding in 1948, and one in 1967. Palestinians say they were driven out.
Israel took over East Jerusalem, the West Bank, Gaza, Sinai and the Golan Heights after it fought Arab states in the Six-Day War in 1967.
Since then, Israel has forged a peace treaty with Egypt and returned Sinai to the country. It annexed East Jerusalem from the Palestinian territories, uniting the historic city to make it the capital of the Jewish state.
But it later unilaterally departed from Gaza, now run by Hamas.
Israel occupies the Palestinian territory of the West Bank and part of Syria's Golan Heights.
For years, Israel and the Palestinian Authority have made attempts to negotiate, but have repeatedly failed to get the process moving.