On October 26, 1994 Israel and Jordan signed a peace agreement ending the state of war between. The agreement resolved minor border disagreements between the two sides and established full diplomatic relations.

Israel and Jordan had officially been at war since 1948 when Transjordan invaded Israel, as Israel declared its independence. In 1988, Jordan officially gave up any claim to the West Bank. Once Israel entered into the Oslo Accords with the Palestinian Liberation Organization (PLO), the path was clear for Jordan and Israel to enter into a peace agreement. President Bill Clinton pressured the Jordanians to enter into an agreement with Israel, and in July 1994 Israel and Jordan entered into a non-belligerency agreement, as a first stage. Over the next three months, the two countries negotiated a final peace agreement. That agreement delineated the borders, and also established full diplomatic relations between Israel and Jordan. Two of the particular provisions of the agreement were recognition of Jordan’s historic role at the Muslim holy sites in Jerusalem and Israel’s agreement to provide 50,000,000 cubic meters of water to Jordan.  The two sides also agreed to work together towards solutions for the Palestinian refugees