Israeli forces withdrew from the west bank of the Suez Canal, marking a significant step towards peace following the Yom Kippur War. The war, which broke out in October 1973, involved a surprise attack by Egypt and Syria against Israel during the Jewish holy day of Yom Kippur. It resulted in heavy casualties and a stalemate that lasted until a ceasefire was brokered. The aftermath of the conflict saw ongoing diplomatic efforts to stabilize relations in the region, leading to disengagement talks and agreements facilitated by international mediators, notably the United States and the United Nations.

In March 1974, following months of negotiations, Israel agreed to withdraw its troops from territories occupied during the Yom Kippur War. This included areas on the west bank of the Suez Canal, which had strategic military importance. The withdrawal was part of a larger disengagement agreement that established buffer zones and increased UN peacekeeping forces in the region. The Israeli government, under Prime Minister Golda Meir, faced internal pressures and external criticism, weighing national security against the need for diplomatic solutions.

The withdrawal signified not only a military redeployment but also a political shift towards recognizing the necessity for dialogue with Egypt. Egyptian President Anwar Sadat's earlier initiatives for peace set the stage for this withdrawal, as both countries aimed for a framework that could eventually lead to a comprehensive peace treaty. The eventual result was a push towards the Camp David Accords in 1978, highlighting the importance of the 1974 withdrawal in the trajectory of Israeli-Egyptian relations.