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As a result of the Oslo Agreement signed in 1993, the initiative failed to achieve its goals of establishing a Palestinian state with Jerusalem as its capital and resolving all final status issues. Palestinian lands faced increased settlement expansion and land annexation, while Palestinian economic capabilities declined and internal divisions worsened. Additionally, arrests and the destruction of institutions intensified. Settlement expansion grew significantly, with the area of settlements increasing from 70 km² to 200 km², and the occupation annexed lands from several villages. Palestinian institutions also ceased to perform their effective roles. On the international level, the United States continued taking supportive measures for Israel, including recognizing Jerusalem as the capital and closing the PLO offices, which undermined the practical possibility of establishing a Palestinian state. Thus, Oslo demonstrated complete failure in achieving Palestinian peace, with settlement activity and political fluctuations further spoiling the prospects.
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