On Monday, Israel linked its potential recognition of Morocco's territorial claims to Western Sahara with Morocco hosting the Negev Forum between Israel and Arab states involved in a US-sponsored regional drive for Arab normalization with Israel.
Israeli Foreign Minister Eli Cohen said that Israel is "now working in regards to this issue" and a "final decision" would occur at the Forum, which he expects to take place in September or October.
Though Morocco would of course like to have good relations with Israel, this can't happen while Israel continues to breach its promises regarding settlement expansion in the West Bank and the security situation deteriorates. Morocco would always appreciate the recognition of its sovereignty over Western Sahara, but the political context of any agreement needs to be beneficial to all parties.
Israel wants good relations just as much as Morocco does. Ultimately, the Negev Forum has not been canceled, just postponed, as Morocco is understandably waiting for things in the West Bank to cool down first. Israel is only interested in peace and is more than happy to see an increasing number of Arab nations find common ground.
Both Israel and Morocco are in the wrong. Israel is supporting war crimes in Western Sahara against the Sahrawi people, and no agreement between the two nations will change that fact. Morocco's occupation of Western Sahara, which itself resembles Israel's occupation of the West Bank, is also a breach of international law and must be opposed.