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Notes -
The big winner here is Iran; Israel has been working hard to normalize relations with as many arab countries as possible, and has been coming close for SA in particular. The problem is, while the arab elites are often westernised and receptive to talks of peace, the common arab man still absolutely hates Israel's guts. As long as there is no open conflict, the arab elite can go behind the population's back and broker contracts with Israel. But the moment any violence breaks out, the arab population is on Palestina's side no matter what. Hamas can massacre civilians and they will go "good riddance", and even if Israel would just answer with peace calls instead of violence, they will say "Israel is afraid, now it's time to strike!".
Engineering this conflict puts a wrench int relations between Israel and any other arab country, and weakens SA's position in particular. Yes the elites know what you know and would love to change things, but recognizing Israel while a conflict with Palestina is brewing is just about the only thing that could possible cause a rebellion to usurp the elite.
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