The political and strategic landscape of the Middle East and North African region has changed dramatically since late 2010 and the events now loosely defined as the ‘Arab Spring’. The dust has yet to settle in many Arab capitals and 2013 is set to be another defining year for the greater Middle East as regional actors, particularly new Islamist-led governments, take on more direct roles in influencing political, military and social developments in the Arab world. Israel and the Palestinian factions of Hamas and Fatah are not immune to these developments and while progress towards peace has been all but non-existent, change in the region must not necessarily lead to more tensions and conflict. The EU and US should work to establish greater Arab ownership of the diplomatic process, convince Israel that its security is best served by assuming a proactive approach to its changing neighbourhood and strive to harness the new realities in the region to modify the incentive calculus of the major domestic players in the conflict.