Israel claims to be threatened by its neighbors. Israel claims to want peace with countries in the region. Neighboring countries have repeatedly stated that a precondition to normalization is a just solution for Palestinians. But Israel does not want a just solution.
In other words, the problem is entirely self-inflicted. Israel wants peace, but without making any concessions on the issue of Palestine. So instead it pursues a system of “peace through violence” - just like it does in the West Bank and Gaza.