Dynamics between Israel and the Arab world have taken a turn for the worse in the first few months of the new Israeli government. The positive momentum in Israel-Arab relations, which Prime Minister Netanyahu himself was key in generating through the signing of the Abraham Accords and which picked up pace during the Bennett-Lapid government that followed, has slowed down. Only limited progress may be feasible under the current government, but conditions for positive change do exist and include marginalizing Israeli extremists, avoiding a flare-up with the Palestinians, reducing the domestic turmoil in Israel, and ensuring the effective involvement of the U.S. and the EU.