Fortress Israel

Another Alternate History scenario,

In this one, World War II goes differently:
The Eastern front is even more of a Horrific meat grinder in this world, with several battles ending in a horrifically terrible death tolls similar to Stalingrad.
The War is over sooner, the Final Solution is not implement at the huge scale it was in our world.
It was implemented enough that the Powers felt responsible for making a New Israel.
As a Compromise, there was to be a Coastal Israel, the International cities of Jerusalem and Jericho, and Palestine-Transjordan, with some remains going to Egypt.
There is less Anti-israeli sentiment due to there not being a huge displacement of Palestinians and the Jews don't control the Holy Land. There is also less Anti-american sentiments, as Israel is a non-aligned country, and Syria (a notoriously harsh Pan-arab dictator) is seen as the Pariah state of the Middle East.
During the Egypt Crisis, Egypt becomes a military dictatorship, and Nasser is cut early from the picture. The Regime mythologizes itself as a part of the Tradition of the Mamluks and Almohavids, and with it's surprising stability, it is a very popular regime. Egypt sometimes is a co-belligerent with Israel against their mutual enemy, the Kingdom of Palestine-Transjordan.
However, as it became obvious that Israel's objective was to annex Jerusalem and Jericho, Israeli-Egyptian relations became colder...
Now in the Wake of *Iranian Revolutions and the outbreak of the Syria-Iraqi War, Israel has Occupied the International cities, in an effort to reach Pan-Arab terrorist groups working with Syria.
Egypt and Israel are finally going to come to blows...