Travis_Bickle You need to go back before the Arab League march for the roots of this. Israel is a state founded on terrorism culminating in the attack on the police station in Haifa in 1947. At that point the British mandate in Palestine was in force. Britain was very pro Arab and strongly against the mass migration which eventually founded the state of Israel, to the extent where the Exodus and other Jewish refugee boats were stopped and turned back by the british and the contents interned in refugee camps in Cyprus and more poignantly Hamburg in Germany (allegedly behind barbed wire and run by a german commandant - there's the great british diplomacy for you). Britain's stance was one strongly in favour a joint Palestinian Jewish state (the Balfour declaration in the 1920s I believe), but the more militant Israelis were against joint governance, which in turn led to reaction from the Palestinian Arabs when Britain and France, (probably due to their collective guilt in allowing the atrocities of the Holocaust to occur,) in particular failed to prevent the mass migration to Palestine and takeover of Palestinian land.
The US was strongly pro Israel and supplied the arms which allowed the fledgling Israeli state to ethnically cleanse huge swathes of Palestine and herd them into refugee camps in which they still survive today. The intransigence of both sides caused conflict throughout the 50s and 60s culminating in the 6 day war in 1967. Egypt, Jordan, Syria (all Sunni states) supported the Palestinian cause. Further wars including the eventually decisive (in Israel's favour) 73 Yom Kippur war ended up with the borders we see today.
It is without doubt, Israel's failure to get involved in reasonable dialogue to resolve the Palestinian refugee situation that led to the formation of militant groups like Hamas in 89. There was a concerted effort in 90's which nearly led to the formation of a viable Palestinian state, but that collapsed under violence and blame from both sides, which led to Israel essentially just pulling up the drawbridge. Hamas' further degradation into their current depravity is unfortunately born of our times where such shock tactics have now become commonplace in the Islamic extremist world (see Taliban, Al Shabab, Al Quaeda, Saudi Wahabism etc).
Any Iranian involvement is limited as Shi-iteism is not popular in the greater Arab Sunni world. Their main influence is their power over Hezbollah based in southern Lebanon, and is more a way for them to wind up the great satan (the US) after the Iranian revolution in 79.
So in summary it was the British that fucked it all up initially, but intransigence on both sides since has led to the current round of barbarity.