It is obviously in the interests of not only Israel and the Palestinians but also the US and world at large to bring this conflict to an end.
The US, the international community, the Palestinians (both the Fatah and its supporters as also Hamas and its followers) and Israeli leaders have made public declarations to the effect that they are committed to a solution that embraces two states, Israel and Palestine, living in peace side by side. The entire Arab world has agreed to recognize Israel if it withdraws to the 1967 borders.
And yet, though the quest for peace between Israel and the Palestinians has been going on for generations now, a resolution of the dispute remains elusive.
There are two main reasons for this.
There are world powers eager to establish their presence in this strategic region. They fan the fires between Israel and the Palestinians and between Fatah (which controls the West Bank) and Hamas (which controls the Gaza Strip). In the guise of helping one or the other, they pour in aid and armaments.