Several non-recognizing states, primarily Arab League and Organization of Islamic Cooperation members, maintain that formal diplomatic recognition of Israel depends on progress toward a two-state solution addressing Palestinian statehood and borders. Saudi Arabia continues to link any normalization to Palestinian state establishment, with recent private statements indicating readiness conditional on internal and regional factors. No major recognitions have occurred since early 2026, and the brief window to June 30 limits scope for new bilateral agreements or breakthroughs. Trader assessments reflect these structural barriers alongside any potential U.S. diplomatic pressure or quiet bilateral talks that could accelerate outcomes before the deadline.