In January 1964, Nasser called for an Arab League summit in Cairo to establish a unified Arab response against Israel's plans to divert the Jordan River's waters for economic purposes, which Syria and Jordan deemed an act of war. Nasser blamed Arab divisions for what he deemed "the disastrous situation". He discouraged Syria and Palestinian guerrillas from provoking the Israelis, conceding that he had no plans for war with Israel. During the summit, Nasser developed cordial relations with King Hussein, and ties were mended with the rulers of Saudi Arabia, Syria, and Morocco. In May, Nasser moved to formally share his leadership position over the Palestine issue by initiating the creation of the Palestine Liberation Organization (PLO). In practice, Nasser used the PLO to wield control over the Palestinian fedayeen. Its head was to be Ahmad Shukeiri, Nasser's personal nominee.

What river did the Israelis want to divert?