History of Israel occupied territories. In November 1977, Egyptian President Anwar Sadat broke 30 years of hostility with Israel by visiting Jerusalem at the invitation of Israeli Prime Minister Menachem Begin. Sadat's two-day visit included a speech before the Knesset and was a turning point in the history of the conflict. The Egyptian leader created a new psychological climate in the Middle East in which peace between Israel and its Arab neighbours seemed possible. Sadat recognized Israel's right to exist and established the basis for direct negotiations between Egypt and Israel. Following Sadat's visit, 350 Yom Kippur War veterans organized the Peace Now
History of the Republic of Egypt 17 September 1978. The accords led to the 26 March 1979, signing of the Egypt–Israel Peace Treaty, by which Egypt regained control of the Sinai in May 1982. Throughout this period, US–Egyptian relations steadily improved, and Egypt became one of America's largest recipients of foreign aid. Sadat's willingness to break ranks by making peace with Israel earned him the enmity of most other Arab states, however. In 1977, Egypt fought a short border war with Libya. Sadat used his immense popularity with the Egyptian people to try to push through vast economic reforms that ended the socialist controls of Nasserism.