Israel has been offered peace many, many, many times. But have always rejected it and are still doing so. The first time was in 1971 when president Sadat of Egypt offered Israel a full peace treaty, almost exactly in the terms of the official U.S. goverment policy at the time. Israel recognised it to be a genuine peace offer. The cabinet considered it and decided to reject it. It was a choice they preferred expansion to security. That would have meant security, it would heve meant the end of the international conflict.
Expansion at that time was primarily into the northeastern Sinai where Israel had expelled thousand of farmers, driven them into the desert destroyed Towns, Mosque and Cemetaries. They simply levelled the place in order to establish a new city an all jew city called Yamit.
The real question was how the US would react and would it continue with it's earlier policy therefore supporting Egypts peace offer or would it shift and support Israeli expansion. There was a discussion in which Kissinger prevailed the national security advisor at the time and the United States adopted his policy of what he called stalemate meaning no negotiations just force and that led directly to the 1973 war. Which turned out to be a very close thing for Israel and it compelled the US and Israel to accept Sadats 1971 proposal.
It took several years but after many negotiations the US finally acccepted the 1971 offer in 1979 at Camp David. That is recorded in US history as a great triumph of US peacemaking, in fact it was a diplomatic disaster which led to a major war, serious threat of nuclear war, anguish and torment for years. Acutally the terms that the US and Israel accepted in 1979 where harsher from their than the ones offered in 1971. The 1971 offer said nothing about the Palestinians just a vague mention of the rights of refugees.
By the mid seventies the Palestian issue had entered the international agenda, Sadat brought it up and there were various handwaving about it. The 1971 offer is rarely discussed, I think it was one of the most fateful ones in Israels history and in fact the history of the region. Israel and the United States had a clear choice, one option was to integrate peacefully into region the other was to rely on force, meaning in particular to become a US client state (because there is no other way to live by the sword).
I could go on and I will. Later.
Tata