Attempts to convert the Israeli - Arab armistice agreements into peace treaties failed . The Arabs insisted that the refugees be permitted to return to their homes, that Jerusalem be internationalized, and that Israel make territorial concessions before they entered peace talks. Israel charged that these demands would undermine its security and refused them.

Frequent incursions by refugee guerrilla bands and attacks by Arab military units were made, which Israel answered with forceful retaliation. Egypt refused to permit Israeli ships to use the Suez Canal and blockaded the Straits of Tiran (Israel's access to the Red Sea), which was seen as an act of war. Border incidents along the frontiers with Egypt escalated until they erupted in the second Arab-Israeli War in October and November of 1956.

Great Britain and France ostensibly joined the attack because of their dispute with Egypt's president Gamal Abdel Nasser, who had just nationalized the Suez Canal. Nasser took over the canal after Great Britain and France withdrew offers to finance the construction of the Aswân High Dam. Israel scored a quick victory, seizing the Gaza Strip and the Sinai Peninsula within a few days. As Israeli forces reached the banks of the Suez Canal, the British and French started their attack. The fighting was halted by the UN after a few days, and a UN Emergency Force (UNEF) was sent to supervise the cease-fire in the Canal zone. In a rare instance of cooperation, the United States and the Soviet Union supported the UN resolution forcing the three invading countries to leave Egypt and Gaza. By the end of the year their forces withdrew from Egypt, but Israel refused to leave Gaza until early 1957, and only after the United States had promised to help resolve the conflict and keep the Straits of Tiran open.