There will always be unrest in Israel and it won't be solved by treaties or proclamations. Every promise to bring peace will fail because of the underlying reason of the hatred – Jesus Christ. To paraphrase H.A. Ironside, this tiny insignificant strip of land is, for God, the center of the earth. The Lord gave this land and defined its borders in the covenant He made with Abraham and gave to his descendants. It is there, in the City of David, God promised the throne would be established forever. It is in this strip of land the Lord Jesus was born, lived, and died. It was here the Lord Jesus was baptized, preached, healed the sick, and saved the lost, where He rose from the dead, then ascended to Heaven. It is to this land, He will someday return and establish His earthly kingdom.
Jesus is why there has been and continues to be conflict in the region. It's not religion, it's reality – Jehovah gave this land to Abraham and his children and the natural heart and mind is enmity against God. There is unrest in Israel because the nation of Israel also will not submit to her King.
Jesus will return to the Earth, as promised. When He does, He will rule this world, from Jerusalem, as Her King (Psalm 2; 2 Samuel 7:1-17). He came the first time, as the Lamb of God, to give Himself as a substitutionary sacrifice for the sins of His people. He will return as the Lion of the tribe of Judah (Revelation 19:11-21). One of my favorite passages on this topic is found in the book of Zechariah chapter 8. When the Lord returns, Jerusalem will be a city of truth, a holy mountain, a peaceful mountain. In verse 5 it says, "And the streets of the city shall be full of boys and girls playing in the streets thereof." During the Earthly reign of Jesus Jerusalem will be a city of peace, safety, comfort, and joy. Righteousness will be regulated from the throne, and the wickedness that puts children in danger will be put down. When there is conflict (any conflict, not just nations), there is sin, and there cannot be peace without Christ. The Prince of Peace is the only hope for peace in Israel. Even so, come Lord Jesus.