This report’s purpose is to present the genesis and current state of the Israeli-Palestinian conflict. The report consists of three parts presenting the historical summary of the conflict ("Conflict Yesterday"), the current shape of the relationship between Palestine and Israel, as well as the outline of the international involvement in shaping the Middle East process ("Conflict Today") and the scenario of the situation’s development taking into account the possibility of Israeli annexation of the West Bank ( "Conflict Tomorrow"). The “Conflict Yesterday" comprehensively describes the genesis of the Middle East conflict, its subsequent stages and peace initiatives. The second part describes the disproportion of forces between Palestine and Israel, while pointing out how this difficult to resolve disagreement affects the quality of Palestinians’ life. In addition, it contains a summary of the results of sociological research conducted among the Palestinian and Israeli populations on the nature of the conflict and its future. The first two parts lead to conclusions and perspectives contained in "Conflict Tomorrow" regarding the growing popularity of the idea of one state being created in place of Palestine and Israel as well as the possibility of further actions promoting two-state solution.