The historic peace agreement between Israel and an Arab country was signed between Israel and Egypt in 1979, known as the Camp David Accords.

This peace agreement was a significant milestone in the Middle East as it ended decades of hostility and mistrust between the two countries. The Accords were negotiated by former US President Jimmy Carter, Egyptian President Anwar Sadat, and Israeli Prime Minister Menachem Begin.

The Camp David Accords were instrumental in establishing a peace treaty between Israel and Egypt, which included mutual recognition of each other`s sovereignty, territorial integrity, and political independence. The treaty led to the establishment of diplomatic relations, trade, and cooperation between the two countries.

The peace agreement paved the way for further peace negotiations in the region, which eventually led to the Oslo Accords between Israel and the Palestine Liberation Organization (PLO) in 1993. The Oslo Accords aimed to establish a comprehensive peace settlement between Israel and Palestine and to create a Palestinian state alongside Israel.

Despite the significant progress made in the peace process, it has not been an easy journey. The Middle East conflict remains complicated, and peace negotiations have been halted and often restarted multiple times. However, the peace agreement between Israel and Egypt remains a historic achievement that set a precedent for peace negotiations in the region.

In conclusion, the first peace agreement between Israel and an Arab country was the Camp David Accords between Israel and Egypt in 1979. This agreement was a significant milestone in the Middle East peace process and paved the way for further negotiations that aimed to bring lasting peace in the region.