At the heart of the Israel/Palestine conflict lies the question of land and who rules it. The collision of Jewish nationalist colonisation and Palestian nationalism, both laying claim to the same territory, forms the basis of this long conflict, deepened by the tragedies of the Holocaust and of the dispossession and occupation of Palestine. The United Nations partition of the land in 1947, an effort to resolve the two claims simultaneously, did not result in a lasting settlement.
Since the war of 1967, Palestinians have come to accept the reality of Israel within the 1948 boundaries. The land dispute has increasingly focused on Israel's occupation of the remaining territories -- the West Bank, Gaza Strip and East Jerusalem. UN Resolutions 242 and 338 stipulate that Israel must withdraw completely from these territories. Israel has not withdrawn, however, and it has built many Jewish settlements in the territories, actions deemed illegal by virtually all other states. The Oslo Accords (1993) and the Road Map (2003) have failed to reach a land agreement between the parties or to bring Israeli withdrawal.
Since 2002, the Israeli government has been building a "security fence" that winds deep into Palestinian territory, claiming the barrier would keep Palestinian suicide bombers from striking Israeli citizens. But this separation wall is a major de facto annexation of Palestinian territories, as is Israel's continued settlement-building. The International Court of Justice has ruled that Israel's West Bank barrier violates international law, but the unequal struggle over the land of Palestine continues.
This page taken from http://www.globalpolicy.org/security/issues/israel-palestine/occupindex.htm
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