This particular conflict isn't about religion though, it's about land.
It is all about race and religion. Jews settled in Isreal afterthe last war and were eventually given independance from british rule after fighting a gorilla war(akin to Northern Ireland).
They formed a very strong state with the help of the USA and under threat from the surrounding Arab nations, quickly became a strong militarily capable country - for self preservation. Remember over 4 million jews had only just been murdered then by the Nazis - not up for debate!
The surrounding Arab nations - with a hatred for all things jewish and a Jewish nation with no capability of compromise and a strong desire to keep their new country alive became enemies. Muslims v's Jews = religion
Conflicts came and went in the 50's but the 7 day war in the 70's topped it all and that is when Isreal expanded and took the gaa strip and golan heights to name but a few lands that they say they needed to stay safe and had belonged to the surrounding nations.
To present day and seeing as how Iran and Iraq are now not trying to kill each other, as they were in the 80's - The Shah got sacked. remember the embassy seige in london and the US embassy in Iran - post revolution. Isreal a strong country that took land from others. The minority muslim and even chritian non-jews want there land to revert back to its original owners - Its just not going to happen, for these over simplified reasons any many more complicated ones.
IMO for what its worth , its destined to be a never ending situation. Islam is a huge religion and seems to be used as an excuse to hate Jews. Orthodox jews seem to think they are the superior race and behave as such, with the added history of perscution, they feel justofoed to act defensively. Living in the chosen land, surrounded by countries who want them all dead, I have sympathy for Isreal. But, ther are no clear right and wrong lines to be drawn for both sides to agree on, other than killing innocent people is so wrong whatever their race or religion.