The signing of the peace accord between Israeli Prime Minister Yitzhak Rabin and Palestinian Liberation Organization (PLO) Chairman Yasser Arafat represented a groundbreaking development in the ongoing Israeli-Palestinian conflict. This event marked the culmination of years of secret negotiations and was tied to the broader Oslo Accords, which aimed to establish a framework for peace and mutual recognition between Israelis and Palestinians. The agreement focused particularly on the establishment of Palestinian self-rule in parts of the West Bank and Gaza Strip, specifically in the areas of Jericho and the Gaza Strip.

The ceremony, held in Cairo, Egypt, featured the participation of Egyptian President Hosni Mubarak and U.S. President Bill Clinton, who reiterated their support for the peace process. The international backing underscored the significance of this accord not just regionally but also globally. This event aimed to address long-standing grievances between the two peoples by providing Palestinians with a degree of autonomy and the potential for statehood, while also ensuring Israeli security concerns were met. It was a hopeful moment that came after years of violence, intifadas, and diplomatic efforts.

Rabin's willingness to engage with Arafat, his long-time opponent, was seen as a courageous step towards ending decades of hostility. Despite the promise of this peace accord, both leaders faced intense criticism from hardliners on both sides. The agreement included provisions for elections in the newly autonomous areas and mechanisms for cooperation, highlighting the hope for a peaceful future.