History of the Republic of Egypt of Western backers of Israel: a 5% cut in output, to be followed by reductions every month until Israel had withdrawn from all the occupied territories and the rights of the Palestinians had been restored. A UN resolution supported by the United States and the Soviet Union called for an end to hostilities and for peace talks to begin. For President Anwar Sadat, however, the war was much more a victory than a draw, as the Egyptian successes restored Egyptian pride and led to peace talks with the Israelis and to Egypt regaining the entire Sinai peninsula. In foreign relations
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.