The United Arab Emirates and Bahrain have signed historic agreements to normalise ties with Israel, becoming the first Arab states in a quarter century to break a longstanding taboo, in a strategic realignment of Middle East countries against Iran.
US President Donald Trump hosted the White House ceremony, casting himself as an international peacemaker at the height of his re-election campaign.
In the Gaza Strip, Palestinian militants fired two rockets into Israel, apparently meant to coincide with the ceremony.
Meanwhile Palestinians across the West Bank were largely subdued and despondent over this news.
Watch the report on ABC TV News.