Israel initially seized the Sinai Peninsula during the Suez Crisis, when it attacked Egypt in response to its blockade of Israeli passage through the Suez Canal and Straits of Tiran; the Egyptians had been contesting Israel's freedom of navigation through there since 1949, impacting the country's ability to import and export goods during the Israeli austerity period.

Although the occupation allowed Israel to re-open the Straits of Tiran, the Suez Canal was closed until 1957, when Israeli troops withdrew from Egypt.

Later, a large-scale Egyptian military offensive against Israel, known as Operation Badr, triggered the 1973 Arab–Israeli War, which ended with the Egypt holding most of the east bank of the Suez.

[1] Between 1967 and 1982, a total of 18 Israeli settlements were constructed throughout the Sinai Peninsula, primarily along the Gulf of Aqaba and in the areas to the south of the formerly Egyptian-occupied Gaza Strip.

Under heavy international pressure, Israeli forces withdrew in March 1957, after heavily mapping the territory and placing secret supply caches in preparation for the next war.

As part of the conditions for the Israeli withdrawal, the Sinai Peninsula was demilitarized and the UNEF peacekeeping force was established there to police the border between Israel and Egypt.