Diplomatic normalization with Israel remains stalled for the roughly two dozen UN members that have withheld recognition, primarily Arab League and OIC states whose policies link any change to progress on a Palestinian state. Saudi officials have reiterated that formal ties require credible movement toward Palestinian statehood with East Jerusalem as capital, a stance reinforced by domestic polling showing overwhelming opposition. Recent U.S.-Saudi agreements on civil nuclear cooperation have revived discussion of bundled security and economic incentives, yet no new recognitions have occurred in 2026. Key variables for the remainder of the year include regional diplomatic initiatives, shifts in Israeli-Palestinian dynamics, and potential multilateral summits that could alter the conditions tied to future recognitions.