Consequences

Israel
The existence of the State of Israel Israeli War Budget and Compulsory Military Service Lack of major Israeli-Arab trade even though they are neighbors Military Occupation of the West Bank and Blockade of Gaza Cruelties of Israelis to their Arab captives is threatening a rebirth of anti-Semitism

Consequences
Palestine
Lack of existence of the State of Palestine as a fully sovereign and internationally recognized state Palestinian Refugee Displacement and Diaspora Constant belligerence between Gaza and Israel since the Palestinian Civil War and Operation Cast Lead Terrorist acts by Palestinianscaused them to forfeit sympathy their cause originally entitled them to

Consequences
US
Top-Level Alliance with Israel (1967-Present) Allowed her to reposition as the strongest power in the Middle East after 1956 (removing the United Kingdom from that position)now provides aid to number of Arab countries

Conclusion
Ongoing conflict between Israelis and Palestinians has killed and wounded many Conflict still persists with suicide bombings daily Possible solutions
2 state solution? http://www.cbsnews.com/video/watch/?id=4752 349n