The Israeli-Palestinian Interim Agreement for the West Bank and Gaza Strip, commonly known as Oslo II, is signed by Prime Minister Yitzhak Rabin and PLO leader Yasser Arafat in a ceremony at the White House. 

The agreement establishes the Palestinian Authority as an elected, self-governing body to oversee Palestinian interests in the West Bank and Gaza Strip over what is meant to be a five-year period, during which Israelis and Palestinians are to negotiate final-status issues from natural resources and borders to Jerusalem.

The agreement establishes Area A, B and C in the West Bank as part of a series of Israeli military withdrawals and increased Palestinian political control. The fundamental principle of the deal is that neither side should take a unilateral action that would change the status of the Gaza Strip or the West Bank.