Bahrain and the United Arab Emirates had long enjoyed quiet relations with Israel but a move by Sudan is especially significant in light of the nation's history. The two Gulf states were the first to normalize relations with the Jewish state. Israel signed peace treaties with Egypt in 1979 and Jordan in 1994.
Netanyahu has made it a priority to improve relations with formerly hostile countries in Africa and the Arab world, particularly in the absence of progress with the Palestinians since he assumed office in 2009.
Al-Mahdi, who is the country's last democratically elected premier and heads the country's largest political party, said: "This statement contradicts the Sudanese national law ... and contributes to the elimination of the peace project in the Middle East and to preparing for the ignition of a new war".
Senior government sources in Sudan told CNN earlier this week that the state sponsor of terrorism designation change was a requirement by Prime Minister Abdalla Hamdok, the leader of the transitional government in Sudan, before talks on normalization could proceed. "A democratic Sudan could be a bulwark of worldwide peace and security in the region". It did not immediately comment on its diplomatic agreement with Israel. "This trajectory of normalization is in the interest of all who seek stability in a region too often torn by conflict".
President Donald Trump made the announcement of the agreement on Friday from the Oval Office at the White House. "More will follow!" he tweeted. "Let's also be clear: Agreements like this don't change the need for comprehensive Israeli-Palestinian peace".
Now facing an economic crisis, the transitional government of Sudan under Abdalla Hamdok has welcomed the trade and investment incentives that come as part of the normalization deal with Israel.
Sudan is the third Arab country since August to announce normalisation of its relations with Israel, after the United Arab Emirates and Bahrain.
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As part of the deal to get off the terror blacklist, the White House said that Sudan's transitional government had deposited $335 million to compensate survivors and family members of victims of the 1998 bombings of U.S. embassies in Kenya and Tanzania as well as other attacks by Al-Qaeda, which Bashir had welcomed.
"They have been eagerly waiting for this moment following a peaceful mass movement that ousted the brutal Bashir regime", he said.
Israel said the recognitions signal that the Palestinians have lost their "veto" over regional peace efforts.
CUFI founder and chairman Pastor John Hagee in a statement, "We are thrilled to see yet another country end hostilities with Israel".
"They also have looked at the state of Israel and said this is an economic powerhouse, this is a country without oil, without some of the natural resources that their neighbors have, yet with a strong economy, really strong in technology and military systems, so these countries have decided that they are better off openly partnering together, especially against the Islamic Republic of Iran, our enemy", she said.
Protesters in Khartoum took to the streets and chanted "no peace, no negotiation, no reconciliation with the occupying entity" and "we will not surrender, we will always stand with Palestine". "Peace is on the march". "For decades, Sudan has been at a state of war with Israel".
Unmentioned in the joint statement was that Sudan has agreed, according to the senior USA official, to designate Lebanon's Hezbollah movement as a terrorist organization, something that Israel has long sought from its neighbours and others in the worldwide community. Its mandate is to strengthen Sudan's economy, "which is very dire", he said, and "it's very hard to consider other things which are not the priority" of the Sudanese people.
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