The United States Institute of Peace’s Project on Arab- Israeli Futures is a research effort designed to anticipate and assess obstacles and opportunities facing the peace process over the next five to ten years. Stepping back from the day-to-day ebb and flow of events in the Middle East, this project examines broader, “overthe- horizon” developments that could foreclose future options or offer new opportunities for peace. The effort brings together U.S., Israeli, and Arab researchers and is directed by Scott Lasensky of the Institute’s Research and Studies program. In this report, Yossi Alpher identifies which local, regional, and international trends will have the greatest impact on Israel’s relationship with Palestinians in the coming years. Next in the series is Khalil Shikaki’s study of long-term trends in Palestinian public opinion and their policy implications for the peace process.