Yitzhak Rabin, Shimon Peres, and Yasser Arafat Are Awarded the Nobel Peace Prize

In the early 1990s, Arafat and leading Fatah officials engaged the Israeli government in a series of secret talks and negotiations that led to the 1993 Oslo Accords.

The agreement called for the implementation of Palestinian self-rule in portions of the West Bank and Gaza Strip over a five year period, along with an immediate halt to and gradual removal of Israeli settlements in those areas. The accords called for a Palestinian police force to be formed from local recruits and Palestinians abroad, to patrol areas of self-rule. Authority over the various fields of rule, including education and culture, social welfare, direct taxation and tourism, would be transferred to the Palestinian interim government. Both parties agreed also on forming a committee that would establish cooperation and coordination dealing with specific economic sectors, including utilities, industry, trade and communication.
Prior to signing the accords, Arafat—as Chairman of the PLO and its official representative—signed two letters renouncing violence and officially recognizing Israel. In return, Prime Minister Yitzhak Rabin, on behalf of Israel, officially recognized the PLO.
The following year, Arafat and Rabin were awarded the Nobel Peace Prize, along with Shimon Peres. The Palestinian reaction was mixed. The Rejectionist Front of the PLO allied itself with Islamists in a common opposition against the agreements. It was rejected also by Palestinian refugees in Lebanon, Syria, and Jordan as well as by many Palestinian intellectuals and the local leadership of the Palestinian territories. However, the inhabitants of the territories generally accepted the agreements and Arafat's promise for peace and economic well-being.

In 1992 Rabin was elected as chairman of the Labor Party, winning against Shimon Peres. In the elections that year his party, strongly focusing on the popularity of its leader, managed to win a clear victory over the Likud of incumbent Prime Minister Yitzhak Shamir. However the left-wing bloc in the Knesset only won an overall narrow majority, facilitated by the disqualification of small nationalist parties that did not manage to pass the electoral threshold. Rabin formed the first Labor-led government in fifteen years, supported by a coalition with Meretz, a left wing party, and Shas, a Mizrahi ultra-orthodox religious party.

Rabin played a leading role in the signing of the Oslo Accords, which created the Palestinian National Authority and granted it partial control over parts of the Gaza Strip and West Bank. Prior to the signing of the accords, Rabin received a letter from PLO Chairman Yasser Arafat renouncing violence and officially recognizing Israel, and on the same day, 9 September 1993, Rabin sent Arafat a letter officially recognizing the PLO. During this term of office, Rabin also oversaw the signing of the Israel-Jordan Treaty of Peace in 1994.

For his role in the creation of the Oslo Accords, Rabin was awarded the 1994 Nobel Peace Prize, along with Yasser Arafat and Shimon Peres. The Accords greatly divided Israeli society, with some seeing Rabin as a hero for advancing the cause of peace and some seeing him as a traitor for giving away land belonging to Israel. Many Israelis on the right wing often blame him for Jewish deaths in terror attacks, attributing them to the Oslo agreements.

Rabin was also awarded the 1994 Ronald Reagan Freedom Award by the former president's wife, former First Lady Nancy Reagan. The award is only given to "those who have made monumental and lasting contributions to the cause of freedom worldwide," and who "embody President Reagan's lifelong belief that one man or woman truly can make a difference."