How does the relationship between Israel and the Palestinians affect the rest of the region?

It has prevented the development of regular economic relations throughout the region

Explanation:

The relationship between Israel and the Palestinians affects the rest of the region in certain ways.

The relationship is mostly contentious and hostile. This has greatly "prevented the development of regular economic relations throughout the region."

It has also caused a lot of Palestinians to be without a home. Approximately hundreds of thousands of Palestinians now reside as refugees in other neighboring countries, including places like Jordan and Lebanon.

confederacy: supported slavery, believed states should be able to nullify federal laws, supported low tariffs

union: everything else