Britain seizes Palestine from the Ottomans and gives support to a "national home for the Jewish people" in Palestine through the Balfour Declaration.
Israel declares independence as the British mandate ends.
Israeli forces strike targets in Egypt, Jordan, and Syria in response to a buildup of Arab armies along Israel's border. Israel gains control of the Sinai Peninsula, the Golan Heights, the Gaza Strip, the West Bank, and East Jerusalem.
A new austerity program is implemented to tackle hyper-inflation and stabilize Israel's currency. Subsequently a new currency, the New Israeli Shekel, introduced.
Israeli and Palestinian leaders participate in an international conference in Annapolis, Maryland, and commit to launch negotiations towards the establishment of a Palestinian state in the West Bank and Gaza with a realization of peace.
Major offshore natural gas deposits are discovered.