Recent diplomatic momentum centers on U.S. efforts to expand the Abraham Accords framework, with President Trump pressing Saudi Arabia, Qatar, and other states toward formal recognition of Israel as part of broader Iran-related negotiations. Saudi officials continue to condition any normalization on meaningful progress toward a Palestinian state, while Pakistan and several OIC members have reaffirmed longstanding refusals absent a comprehensive two-state resolution. As of early 2026, 29 UN members still withhold recognition, including key Arab League and OIC states. No major new bilateral recognitions have occurred in the past several months, leaving trader assessments focused on whether scheduled bilateral talks or U.S. incentives can overcome these structural barriers before year-end.