As mentioned by teko and brice, that region has been fighting amongst themselves for centuries.
I wish all outside influences would stop funding both sides and supplying them with weapons and leave them alone.
That isn't about to happen.
I'm sure resources, especially water, has something to do with the problem.
The solution is difficult as extremists on both sides wish the other side were entirely wiped out and there are religious extremists outside the area who want war in the region as it fulfills the prophesies they believe in.
When I look at the region in question, I see a people who've been at war for hundreds of years. All of the reasons were mentioned above. Is a truce possible? I'd imagine so, but it would be another situation where people would have to set aside their ideals and work towards a common goal.
There has always been problems in that part of the world and frankly I think things will not change. What I wonder is, is not Israel capable of raising a million man army, because don't all citizens have to be available for service in case of military there? I'm having a hard time understanding why they keep getting provoked over and over again. I'm pretty ignorant as to the ins and outs of all this but I do know that Israel has pulled back many times. Not sure if that is going to happen this time. I understand they are pulling numbers and equipment readying for a possible ground war. I sure hope not but would not be shocked at all if this is what happens.
http://worldnews.nbcnews.com/_news/2012/11/17/15229132-some-indications-hamas-israeli-truce-is-possible-egypt-says?lite