This comprehensive study examines the profound transformation in Middle Eastern geopolitics following the normalization agreements between Israel and several Arab states, known as the Abraham Accords. Through an extensive application of Stephen Walt's Balance of Threat theory, this research analyzes the complex interplay of security concerns, economic interests, and strategic calculations that have driven this historic realignment. The study employs a mixed-methods approach, combining qualitative analysis of official documents, policy statements, and elite interviews with quantitative data on arms transfers, economic cooperation, and diplomatic engagements. Our findings reveal that the Accords represent a fundamental shift in regional alliance structures, moving from ideological confrontation to pragmatic cooperation based on shared threat perceptions. The research demonstrates how the growing influence of Iran and its proxy networks, coupled with changing US engagement in the region, has created conditions for this unprecedented alignment. The study further investigates the implications for regional stability, the Palestinian question, and the broader balance of power in the Middle East. The analysis concludes that while the Accords have created new opportunities for economic cooperation and security coordination, they have also intensified regional polarization and created new security dilemmas that may perpetuate cycles of conflict.