Yes. The Shi’ite and Sunni sects of Islam play an important role in the Israeli issue. Over the last ten years or so the Arab and Muslim countries in the Middle East have begun to form alliances based on religious beliefs (Shi’ite v. Sunni) rather than nationalism.
For Israel, this means the main threats to them are now from Iran, Shi’ite Iraq, Syria and Hezbollah in Lebanon. But, because of the conflict over religion, Israel also now has some so-called support from other Sunni Arab nations, such as Saudi Arabia. The traditional Arab-Israeli conflicts have left Israel, “the lesser of two evils”.
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