New diplomatic deals taking place in the Middle East over the past few weeks have attracted international attention, indicating a significant shift in the region’s geopolitical dynamics. Media reported the deal involving key countries in the Middle East, including Israel, the United Arab Emirates (UAE), Bahrain and Saudi Arabia. This agreement is expected to bring political and economic stability, as well as create new business opportunities in the region. One important aspect of this agreement is the normalization of diplomatic relations between Israel and Arab countries. This is a historic step considering the long-standing conflict that has characterized the region. The UAE and Bahrain became the first Arab countries to establish official relations with Israel since the peace agreements with Egypt in 1979 and Jordan in 1994. This shows a desire to build cooperation for broader strategic interests. Apart from diplomatic relations, this agreement also includes economic aspects. The divergence between political tensions and economic potential is one of the main focuses. Investment in the technology, energy and tourism sectors is a bright spot for economic growth in this region. To this end, business forums have been organized where entrepreneurs from Israel and the Gulf countries can meet and explore collaboration opportunities. This refers to the prospect of bilateral trade that could strengthen relations between the two parties. However, amidst this optimism, challenges remain in the form of reactions from the Palestinian side. They feel marginalized, especially with the revival of relations between Arab countries and Israel without resolving the basic issues related to the Israeli-Palestinian conflict. This raises concerns that this deal might worsen the situation in an already fragile region. Many parties suggest the need for a more inclusive dialogue to ensure human rights aspects are met and the interests of the Palestinian people are respected. In a broader context, this agreement can be considered as part of a larger regional strategy. The involvement of the United States in facilitating this agreement shows the important role that great powers play in shaping the direction of diplomacy. This is also a signal to other countries in the region that may want to follow in the footsteps of the UAE and Bahrain, in the hope of creating greater stability in the Middle East. Tensions with Iran remain a big issue in this polemic. Some Arab states, especially the Saudis, see Iran’s presence as a threat, and normalizing relations with Israel is seen as a step to balance power. With the Saudi royal dynasty, and deep ties with the US, the move is seen as an attempt to create a common front against Tehran’s influence in the region. The new diplomatic agreement in the Middle East provides much hope for the future, but it still requires effort and commitment from all parties to achieve sustainable peace. Given these dynamics, international observers will continue to monitor developments to understand their long-term impact on regional stability.