A major step toward peace between israelis and palestinians took place in 2005 when israel removed all settlements from the west bank

I think the peace talks is the major step towards peace for both countries. The removal of the settlements is the second step. Palestine was not happy when Israel had expanded its border beyond the given boundary under the treaty of Roadmap. Palestine also wanted to get the West Banks and the Gaza Strips because they wanted to expand their territories in the same part where Israel had created the settlements. Thus, leaders of both nation had pulled out their settlements until the land disputes are resolved.