The ongoing Arab revolutions may well make West Asian and North African nations more hostile to Israel which, as a “derivative” of the West is more immune to revolutionary ferment and to the vagaries of energy markets. Global stability seems to require regionalisation around locally dominant states. Israelis and Palestinians can hardly be gathered in a single state but must build a common socio-economic region (IPR) to be viable. The current asymmetry between Israel and Palestinian territories must be reduced for the sake of stability. The author proposes the concept of political derivatives to prevent conflicts as well as a reduction in Israel's undeclared nuclear arsenal and the adoption by both sides of innovative solutions to problems related to religions claims, the status of Jerusalem, security, borders and the all important water supply issue.