The Nobel Peace Prize was awarded to Yasser Arafat, Yitzhak Rabin, and Shimon Peres in recognition of their pivotal roles in the Oslo Accords, an important step towards ending the Israeli-Palestinian conflict. The Oslo Accords, signed in 1993, were the result of secret negotiations between Israeli and Palestinian leaders, leading to mutual recognition and a framework for Palestinian self-government. The award ceremony took place in Oslo, Norway, and underscored the international community's hopeful sentiment towards the peace process in the Middle East.

The agreements represented a significant thaw in relations, where Arafat, representing the Palestine Liberation Organization, recognized Israel's right to exist, while Rabin, the Israeli Prime Minister, acknowledged the Palestinian people's aspirations for self-governance. The ceremony highlighted the groundbreaking nature of their cooperation, which spurred expectations for a renewed diplomatic process in the region. The presentation of the Nobel Prize was seen as both a celebration of these achievements and a commitment to addressing the complexities of regional peace.

In receiving the Nobel Peace Prize, the three leaders were endorsed as peacemakers by the world community, raising hopes for a lasting resolution to decades of hostility. Moreover, the recognition brought attention to the significant challenges that lay ahead, including the need for continued dialogue and compromises from both sides to sustain the momentum initiated by the Oslo Accords.