Before 1967, Israel had established diplomatic relations with a majority of the world's nations, except for the Arab states and most other Muslim countries. UN Security Council resolutions provided the basis for cease-fire and disengagement agreements concerning the Sinai and the Golan Heights between Israel, Egypt, and Syria and for promoting the Camp David accords and the Egyptian-Israeli Peace Treaty. The Soviet Union and the communist states of eastern Europe (except Romania) broke diplomatic relations with Israel during the 1967 war, but those relations were restored by 1991.

The landmark October 1991 Madrid conference recognized the importance of Security Council Resolutions 242 and 338 in resolving regional disputes, and brought together for the first time Israel, the Palestinians, and the neighboring Arab countries, launching a series of direct bilateral and multilateral negotiations. These talks were designed to finally resolve outstanding security, border, and other issues between the parties while providing a basis for mutual cooperation on issues of general concern, including the status of refugees, arms control and regional security, water and environmental concerns, and economic development.

Today, Israel has diplomatic relations with 161 states. Following the signing of the Israel-PLO Declaration of Principles on September 13, 1993, Israel established or renewed diplomatic relations with 35 countries. Most important are its ties with Arab states. Israel has full diplomatic relations with Egypt, Jordan, and Mauritania. In addition, on October 1, 1994, the Gulf States publicly announced their support for a review of the Arab boycott, in effect abolishing the secondary and tertiary boycotts against Israel.

Israel has diplomatic relations with nine non-Arab Muslim states and with 32 of the 43 Sub-Saharan states that are not members of the Arab League. Israel established relations with China and India in 1992 and with the Holy See in 1993.